Meta Platforms has agreed to implement significant changes to Facebook and Instagram and pay up to $18 billion US to settle claims made by states across the United States. The settlement, reached during a California federal trial, addresses allegations that the company engineered the apps to create addiction among children, provided misleading information about their safety, and improperly gathered personal data from children using the platforms.
As part of the settlement, Meta, based in California, will restrict teenagers’ use of Facebook and Instagram to two hours per day and block access entirely between midnight and 6 a.m. unless parental consent is obtained. These limitations may be strengthened if other social media companies adopt similar regulations. Additionally, Meta will enhance measures to prevent children from accessing age-restricted content, although personalized recommendations and targeted advertising will remain unchanged. Notably, the settlement does not address certain problematic content identified by Meta researchers, such as posts causing discomfort regarding body image.
The total settlement amount, approximately equal to three to four months of the company’s profit, reflects Meta’s commitment to ensuring the safety and well-being of teenage users on its platforms. The settlements involve over $16.7 billion US in payments to 47 U.S. states, Washington, D.C., Puerto Rico, American Samoa, and the Northern Mariana Islands. Texas separately reached a settlement exceeding $1 billion US.
In addition to addressing issues related to underage users, the settlement resolves privacy claims associated with the Cambridge Analytica scandal, with California, Illinois, New Mexico, and Washington, D.C., receiving $459.3 million US to settle those lawsuits. Experts view the settlement as a significant development, emphasizing the pressure on Meta and other companies to revise their practices amid public and legislative scrutiny.
U.S. District Judge Yvonne Gonzalez Rogers approved the main settlement, excluding Texas, and expressed satisfaction with the progress made. The lawsuits against Meta were part of a broader legal battle involving various states, local governments, and individuals, accusing social media companies of contributing to a nationwide youth mental health crisis. The trial in Oakland, California, covered claims from several states asserting violations of their consumer protection laws and the U.S. Children’s Online Privacy Protection Act.
While this settlement marks a significant step, Meta, along with other tech giants like Snapchat, YouTube, and TikTok, still faces numerous lawsuits alleging the intentional design of addictive features targeted at children and teenagers. These cases, consolidated before Judge Yvonne Gonzalez Rogers in Oakland, involve a range of plaintiffs, including individuals, school districts, and state governments. The settlement underscores the ongoing legal challenges confronting social media companies and their responsibilities towards young users.
The resolution of the lawsuit comes after Meta faced legal setbacks, including a jury’s decision in March to pay $375 million US for misleading consumers about platform safety. The company was also ordered to implement youth safety measures following a finding of creating a public nuisance. Despite these challenges, Meta and other defendants are appealing the decisions, with multiple cases still pending in state courts.
The settlements highlight the complex legal landscape surrounding social media platforms and the increasing focus on safeguarding the well-being of young users. As the legal battles continue, the outcomes of these cases will likely shape the future regulatory environment for tech companies and their responsibilities towards users, particularly children and teenagers.