Meta Platforms has agreed to implement significant changes to Facebook and Instagram and pay up to $18 billion US to settle claims made by various states in the United States. The states alleged that the company designed the apps in a way that fosters addiction among children, misled consumers about safety issues, and improperly gathered personal data from children using its platforms.
The settlement was reached during a high-profile California federal trial focusing on accusations that social media companies posed harm to young users. While Meta, based in California, denied any wrongdoing, it agreed to the terms of the settlement.
Colorado Attorney General Phil Weiser emphasized the importance of safeguarding children in a statement, acknowledging the substantial relief obtained through the settlement. As part of the agreement, Meta will enforce limits on teenagers’ daily use of Facebook and Instagram, restricting it to two hours per day with no access between midnight and 6 a.m. unless parental consent is provided. These restrictions may become stricter if other social media companies adopt similar measures.
Additionally, Meta will enhance its efforts to prevent children from accessing age-restricted content. Notably, the settlement does not mandate Meta to abandon personalized recommendations or targeted advertising.
The total settlement amount, approximately equivalent to three to four months of profit for Meta, includes over $17.6 billion US in payments to 48 U.S. states, Washington, D.C., Puerto Rico, American Samoa, and the Northern Mariana Islands. The resolution also addresses privacy claims related to the Cambridge Analytica scandal, with California, Illinois, New Mexico, and Washington, D.C., set to receive $459.3 million US to settle those lawsuits.
The settlement’s broad impact extends to lawsuits filed by several states over allegations that Meta violated consumer protection laws. The cases involved claims that Meta breached the U.S. Children’s Online Privacy Protection Act by collecting personal data from underage users without parental consent and using it to train AI models.
Looking ahead, Meta, along with other tech giants like Snapchat, YouTube, and TikTok, faces numerous lawsuits alleging that their platforms’ features are intentionally addictive to children and teenagers, contributing to a mental health crisis. These cases, consolidated in federal courts, involve legal actions by individuals, school districts, and state governments.
The settlement arrives following Meta’s losses in significant lawsuits, including a New Mexico case resulting in a $375 million US penalty for misleading consumers and an order to implement safety measures. With ongoing legal battles and appeals pending, the impact of these settlements and court decisions on social media companies remains under scrutiny.
The response from various states underscores the ongoing efforts to hold tech companies accountable for potential harms caused by their platforms, with the legal landscape continuing to evolve in addressing digital safety concerns for users, especially minors.