Meta Platforms has agreed to significant alterations to Facebook and Instagram, coupled with a payment of up to $18 billion US, to settle claims made by states across the United States. The allegations suggested that the company engineered the apps to foster addiction in children, deceived consumers about their safety, and unlawfully gathered personal data from children using its platforms.
This resolution was reached during a high-profile California federal trial, examining accusations that social media companies negatively impacted young users. Despite agreeing to the settlement, the California-based company denied any misconduct.
Colorado Attorney General Phil Weiser emphasized the importance of protecting children in this case, stating that the settlement’s provisions go beyond what any court has mandated or is likely to mandate. As part of the settlement, Meta has consented to limiting teenagers’ daily use of Facebook and Instagram to two hours, with a complete block on usage between midnight and 6 a.m. unless parental approval is obtained. These restrictions may be tightened if other social media platforms adopt similar regulations.
Furthermore, Meta will implement enhanced measures to prevent children from accessing age-restricted content. Notably, the settlement does not require Meta to discontinue personalized recommendations or targeted advertising, nor does it address certain problematic content identified by Meta researchers, such as posts on Instagram that negatively impact users’ body image.
The total settlement amount, which includes payments to various U.S. states and territories, represents approximately three to four months of profit for Meta. The company emphasized its commitment to ensuring a safe and productive experience for teenagers on its platforms, acknowledging the necessity of getting it right for both parents and teens.
In addition to the financial component, the settlement also resolves privacy-related lawsuits stemming from the Cambridge Analytica scandal, with California, Illinois, New Mexico, and Washington, D.C., receiving $459.3 million US in total to settle those specific claims.
Looking ahead, Meta, along with other tech giants like Snapchat, YouTube, and TikTok, faces numerous pending lawsuits alleging that they purposely designed their platforms to be addictive to young users, contributing to a mental health crisis. These ongoing legal battles underscore the growing scrutiny and demand for accountability within the tech industry.
