Meta, states agree to $17 billion settlement in child safety trial

California Attorney General Rob Bonta speaks to reporters at a press conference after opening statements took place in the Meta trial over a lawsuit brought by U.S. states about social media addiction, at the Ronald V. Dellums Federal Building and U.S. Courthouse in Oakland, Calif., on Aug. 18. Godofredo A. Vasquez/AFP via Getty Images hide caption

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The social media company Meta and the states suing it have agreed to a proposed settlement that would resolve a landmark federal child safety lawsuit and could be a turning point for a wave of lawsuits against social media companies.

California, Colorado, Kentucky and New Jersey represented a larger consortium of states that alleged in the suit that Meta designed its apps — Facebook and Instagram — to be addictive to kids and knew about the risks those platforms posed, but hid that information from the public.

In addition to claims that Meta broke state consumer protection laws, the states accused Meta of violating the Children's Online Privacy Protection Act by collecting data about children under the age of 13. Meta has a policy of not allowing kids under 13 on its platforms, but some skirt the rule by registering with false birth dates.

The proposed settlement would require Meta to pay up to $17 billion in penalties to the states over 10 years and to make significant changes to how its platforms operate so that they are safer for minors.

"Today, we have secured a settlement with Meta that will make social media less dangerous for our kids and make a world of a difference for children and their families," California Attorney General Rob Bonta said in a statement.

"Meta has agreed to make massive transformations that will reduce the risk of harm from its platforms — and will do it within months," he added.