Meta Platforms has reached a settlement agreement with states across the United States, agreeing to implement significant changes to Facebook and Instagram. The tech giant will pay up to $18 billion US to resolve allegations that it intentionally designed the platforms to create addiction among children, deceived consumers about safety measures, and improperly collected personal data from underage users.
The settlement was achieved during a California federal trial, marking a crucial test regarding social media companies’ impact on young users. Despite agreeing to settle, Meta, based in California, has denied any wrongdoing.
As part of the settlement, Meta has committed to restricting teenagers from using Facebook and Instagram to two hours per day and blocking access between midnight and 6 a.m. unless parental consent is provided. These usage limits could become stricter if other social media firms adopt similar regulations.
Moreover, Meta will enhance efforts to prevent children from accessing age-restricted content. Notably, the settlement does not mandate Meta to discontinue personalized recommendations or targeted advertising. It also does not directly address concerning content, such as posts on Instagram that negatively impact body image perception.
The total settlement amount, equivalent to about three to four months of the company’s profits, includes payments exceeding $16.7 billion US to various states and territories. Additionally, Texas has separately settled for over $1 billion US.
Furthermore, the settlement encompasses lawsuits from California, Illinois, New Mexico, and Washington, D.C., related to privacy issues arising from the Cambridge Analytica scandal. These states will receive $459.3 million US to resolve their legal claims.
U.S. District Judge Yvonne Gonzalez Rogers has approved the main settlement, excluding Texas, referring to it as a positive step forward. The settlement resolves numerous claims alleging that Meta and other social media companies have contributed to a nationwide mental health crisis among youths.
Looking ahead, Meta, Snapchat, YouTube, TikTok, and their parent companies are still facing multiple lawsuits at federal and state levels over allegations of intentionally designing addictive features for children and teenagers. Thousands of cases are pending in state courts, emphasizing the ongoing legal challenges confronting these tech giants.