Meta to pay New Jersey at least $525 million in landmark social media settlement

Agreement imposes time limits, nighttime blocks and new safeguards for children and teenagers

Mark Zuckerberg. (Photo: JD Lasica).

Meta Platforms will pay New Jersey at least $525 million and implement sweeping new safeguards for children and teenagers under a multistate settlement that could reach $17.1 billion nationwide, Attorney General Jennifer Davenport announced today.

The agreement, which is subject to court approval, resolves claims that Meta knowingly designed Instagram and Facebook with addictive features, exposed young users to serious mental-health risks and misled families and the public about the safety of its platforms.

New Jersey, which helped lead the case, could ultimately receive more than $752 million.

“Today’s settlement is a major victory for New Jersey families,” Gov. Mikie Sherrill said. “Big Tech is finally being held accountable for the harm it is causing, especially to our children’s mental health and safety.”

Sherrill said the agreement would provide parents and teenagers with relief through “groundbreaking new safety features to protect kids online.”

“But here in New Jersey, we won’t stop fighting until all of the Big Tech companies follow suit and finally stop the constant assault of addictive algorithms,” she said.

The case against Meta was filed in October 2023 by then-Attorney General Matt Platkin.  New Jersey began co-leading a bipartisan investigation into the social media industry in 2021

The settlement requires Meta to impose a combined daily limit of two hours for minors using Instagram and Facebook, with automatic pauses after 15 minutes of continuous use and again after 60 and 90 minutes.  Those restrictions would remain in place for five years.

If Snapchat, TikTok and YouTube adopt comparable restrictions, the daily limit for each platform would fall to 60 minutes and remain in effect for ten years.

Meta must also block youth access between midnight and 6 AM, limit school-day access and weekday push notifications, strengthen age-verification procedures and provide parents with more effective controls.

Additional provisions require protections against bullying and content promoting eating disorders, suicide and self-harm.  Meta must also restrict beauty filters and visible “like” counts associated with harmful social comparisons. Independent auditors will review the company’s compliance and report their findings to the states.

“As a parent, protecting your kids is always your North Star. And this agreement achieves critical protections for our children today,” Davenport said.  “It would not have been possible without our amazing litigation team, who worked with their counterparts across the country to bring this groundbreaking case.”

A lawsuit filed in 2023 alleged that Meta deliberately used features intended to keep children and teenagers on its platforms despite internal evidence of resulting mental and physical harm.

Trial proceedings over Meta’s alleged deception began last week in Oakland, California. The trial team was led by Davenport and attorneys general Rob Bonta of California, Phil Weiser of Colorado and Russell Coleman of Kentucky.

Sherrill tied the settlement to legislation she signed last month imposing new restrictions on how technology companies interact with children online.

“I’m a mom of four kids and have seen firsthand how social media platforms can harm our kids – and how parents are often left in this fight alone,” Sherrill said.  “The lawsuit our Attorney General helped lead against Meta is another big step in ending the addiction that the technology companies are pushing on kids for profit.”

Meta will pay a minimum of $12.1 billion and as much as $17.1 billion to resolve the youth-harm litigation brought by 47 states, the District of Columbia, Puerto Rico, American Samoa and the Northern Mariana Islands.

A separate settlement announced today requires Meta to pay more than $460 million over allegations that it shared nonpublic Facebook user information with third parties, including Cambridge Analytica, ahead of the 2016 presidential election.  New Jersey will receive more than $20 million from that agreement.

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David Wildstein: David Wildstein is the Editor in Chief for the New Jersey Globe.