META settles social media harm case

Meta has agreed to pay up to $16.68 billion to settle claims from 29 states alleging that Facebook and Instagram were designed to addict children and that the company misled consumers about safety while improperly collecting children's personal data. The settlement arose during a federal trial in California, avoiding a significant legal showdown.

Meta will implement changes for teenage users, including daily usage limits. The company maintains it did not wrongfully mislead consumers about addiction, as it argues "social media addiction" is not a recognized condition.

The claims are part of broader litigation against Meta and other social media firms regarding their impact on youth mental health. Many lawsuits are still pending across states.