In this photo illustration, a person holds a smartphone displaying the logo of Meta Platforms Inc. (NASDAQ: META), the parent company of Facebook, Instagram, and WhatsApp, with the company’s blue infinity loop symbol visible in the background, on July 28, 2025 in Chongqing, China. (Photo illustration by Cheng Xin/Getty Images)
SOURCE: Cheng Xin
Meta to pay millions to Vermont, New York in nationwide settlement
MONTPELIER, Vt. —
Meta, the company that owns social media platforms Facebook and Instagram, has agreed to pay the state of Vermont more than $90 million as part of a larger multi-billion-dollar settlement over harm done to children.
The nationwide settlement, which will be at least $12.2 billion and could be as high as $17 billion, was announced on Wednesday to resolve claims brought by dozens of state attorneys general that it intentionally designed addictive platforms that harmed young people’s mental health, according to a court filing Wednesday.
The additional funding would be dependent on whether social media platforms TikTok, Snap and YouTube enter into deals with the states to provide similar monetary relief and platform changes, according to an announcement from Vermont Attorney General Charity Clark’s office.
There is currently a lawsuit in place with TikTok. Similar suits are not pending with YouTube and Snap at this time.
The settlement ends a landmark legal battle for the social media giant.
Clark announced that $3.3 million will come from the settlement immediately. Additional payments of $8.8 million will be scheduled at regular intervals until the full amount is paid to the state over the next decade.
Meta will also have to implement new safety features for children, including daily time limits, app restrictions at night, notification bans at night and more as part of the deal.
Clark said that she hopes the money will be used to support childhood mental health. However, the final decision on where funds are allocated will be made by the state legislature.
New York also received $1.15 billion from the settlement. Attorney General Letitia James said the settlement marks “a major step towards breaking the cycle of social media addiction.”
Meta Chief Legal Officer CJ Mahoney said he was proud of the terms of the settlement but urged the other social media platforms to also make necessary changes to protect kids.
“As a parent, I’m proud of both the work Meta has done to protect kids historically, and of this new groundbreaking agreement. But its success depends on all other social media platforms following Meta’s lead.”