Meta Platforms has agreed to implement significant changes to Facebook and Instagram and pay a sum of up to $18 billion as part of a settlement to address allegations made by states in the United States. The claims suggested that the company purposely designed the apps to foster addiction among children, provided misleading information about their safety, and improperly gathered children’s personal data while using its platforms.
This agreement was reached during a high-profile California federal trial that examined accusations of social media platforms harming young users. Despite agreeing to the settlement, the California-based company denied any wrongdoing.
Colorado Attorney General Phil Weiser emphasized the primary aim of the case was to safeguard children. The settlement mandates Meta to limit teenagers’ daily use of Facebook and Instagram to two hours and block all access from midnight to 6 a.m. without parental approval. These restrictions could be tightened if other social media companies adopt similar regulations.
Additionally, Meta will enhance its measures to prevent children from accessing age-restricted content. Notably, the settlement does not require Meta to abandon personalized recommendations or targeted advertising, nor does it address specific problematic content identified by Meta researchers, including posts that negatively impact Instagram users’ body image.
The total settlement amount, equivalent to about three to four months of the company’s profit, includes over $16.7 billion in payments to 47 U.S. states, Washington, D.C., Puerto Rico, American Samoa, and the Northern Mariana Islands. Texas separately agreed to a settlement exceeding $1 billion.
Furthermore, the settlement resolves lawsuits from California, Illinois, New Mexico, and Washington, D.C., related to privacy claims stemming from the Cambridge Analytica scandal. These states will receive $459.3 million to settle those lawsuits.
U.S. District Judge Yvonne Gonzalez Rogers approved the primary settlement, excluding Texas, and expressed satisfaction with the progress made. The claims against Meta were part of a broader wave of litigation alleging that social media companies like Meta contributed to a nationwide youth mental health crisis.
The settlement signifies a pivotal moment in the ongoing legal battles faced by Meta and other tech companies regarding their platforms’ impact on children’s well-being. Many more cases remain pending in both federal and state courts, indicating the enduring legal challenges confronting these companies.