Meta Settles Teen Addiction Case; Up to $17.1B

Meta agreed Wednesday to pay 47 states, the District of Columbia and a handful of U.S. territories up to $17.1 billion to settle claims that Facebook and Instagram were built to addict children, according to Stateline and the Florida Phoenix, which carried the attorneys general announcement. The deal ends a landmark federal trial that opened last week in Oakland, California.

The words "up to" are doing real work. Under the settlement terms, Stateline reports — citing Meta's own description of the agreement — Meta pays states 70%, about $12.7 billion, unless TikTok and Alphabet-owned YouTube also agree to one-hour daily time limits for young users, night mode and age assurance measures. The remaining 30%, $5.3 billion, is paid only if those two companies sign on and each agrees to pay states about $5.3 billion of their own. Coverage of the number varies: PBS NewsHour rounds it to "$17 billion," the Jerusalem Post writes "$18 billion of settlements." The figure in the announcement is a ceiling, not a check.

Meta has not admitted wrongdoing. That is stated plainly in Stateline's account of the agreement.

What actually changes on the apps

Per the settlement terms published by Stateline, Meta pledged product changes for young users, most of which must stay in place for at least a decade: a default two-hour daily time limit across Facebook and Instagram that can only be switched off with a parent's permission; a default block on Meta apps between midnight and 6 a.m.; muted notifications by default between 8 a.m. and 3 p.m., when young users will no longer receive push alerts except for direct messages and account-security warnings; prompts after every 15 minutes of continuous screen time; the option of a non-algorithmic feed; the ability to turn off autoplay; like and reaction counts hidden by default; and no access to extreme makeup or cosmetic-surgery filters. Direct messaging is excluded from the night, time-limit and school restrictions.

Who gets paid, and who isn't in it

Money goes out annually over a decade, apportioned by population, Stateline reports. Pennsylvania's attorney general announced a $500 million share, according to WGAL. Washington state is guaranteed $237 million with the potential to collect up to $339 million, The Center Square reported.

Three states are not part of the multistate deal: Florida, New Mexico and Texas. New Mexico won its own case earlier this year, when a jury ordered Meta to pay $375 million for violating state consumer protection law. Texas negotiated separately — WFAA reports the state secured more than $1 billion from Meta along with the same new teen restrictions.