Meta has agreed to pay a maximum of $16.68bn to settle claims brought by states across the country. They alleged the company designed Facebook and Instagram to addict children, misled consumers about their safety, and improperly collected the personal data of children who used its platforms.
Diana Novak Jones reported the figure for Reuters on Wednesday, from the court papers. The two sides struck the agreement during the trial itself, now in its second week at the federal court in Oakland, California. It averts the rest of that trial. Meta denied wrongdoing in agreeing to settle.
Meta shares rose 4.4% in pre-market trading, Reuters reported.
What Meta has agreed to change
A court filing released on Wednesday sets out the terms. It describes them as a proposed consent judgement. Meta will introduce daily usage limits and nighttime blocks for teenage users of Facebook and Instagram, nationwide. It will also add what the filing calls enhanced age assurance measures, which aim to keep children off the apps. Further tools for parents and guardians form part of the deal.
