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Critics argue Meta's teen-therapy payout misses the mark

Meta has been ordered to allocate $420 million of a $567 million penalty to teen therapy, and a separate settlement could reach $18 billion, but experts say counseling may not be the best use of the funds.

In a New Mexico courtroom, a judge ordered Meta to pay a $567 million penalty for the alleged addiction and mental-health harms its platforms cause teens, with $420 million designated for therapy services. Meta has filed an appeal against the judgment. Shortly after, the company reached a settlement with 47 states and the District of Columbia that could require up to $18 billion in payments, including provisions for parental controls and teen safeguards, as well as additional counseling funding.

State attorneys general describe the agreement as a landmark response to a generational crisis. Nonetheless, the co-founder and senior fellow of the Center for Teen Flourishing argue that directing large sums toward therapy may not address the root problems and suggest alternative approaches would be more beneficial.

Why it matters

How settlement money is used will shape the effectiveness of efforts to protect teens from social-media harms.

How this story developed

  1. Aug 26 Meta agrees to up to $18 billion settlement and new teen safety rules
  2. Aug 26 Meta’s settlement adds mandatory usage caps and night‑time blocks for teen accounts.
  3. Aug 27 Meta launched a paid advertising campaign calling on rival platforms to adopt the new teen‑protection measures.
  4. Aug 29 Thirty percent of the settlement amount is tied to TikTok and YouTube matching the protections and payments.
  5. Aug 31 A federal judge approved the settlement, moving it toward implementation.
  6. Aug 31 Attorneys for a class action say the settlement leaves thousands of individual family claims and lawsuits from schools and cities untouched.
  7. Sep 2 The settlement was finalized with 47 states and Washington, DC rather than the larger coalition previously reported.

In this story

meta settlementteen therapymental healthsocial media addiction$567 million penalty$18 billion settlementcounseling fundingteen safeguards
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