Meta Platforms has agreed to significant alterations to Facebook and Instagram, along with a payment of up to $18 billion US, as part of a settlement to address allegations made by various states in the United States. The claims alleged that the company intentionally designed the apps to foster addiction among children, deceived consumers regarding their safety, and unlawfully gathered personal information from children using their platforms.
This resolution was reached during a high-profile California federal trial that scrutinized the accusations that social media companies had a detrimental impact on young users. Despite agreeing to the settlement, the California-based company refuted any wrongdoing.
Colorado Attorney General Phil Weiser emphasized, “The focus of this case was to protect our kids. The relief we are getting in this settlement is very meaningful and well beyond what any court has ordered or is likely to order.”
As part of the settlement, Meta committed to limiting teenagers’ daily use of Facebook and Instagram to two hours and prohibiting all usage between midnight and 6 a.m. without parental consent. These restrictions may be further tightened if other social media entities adopt similar measures.
While the agreement mandates Meta to enhance safeguards to prevent children from accessing age-restricted content, it does not compel the company to abandon personalized recommendations or targeted advertising. Moreover, certain problematic content highlighted by Meta researchers, such as posts causing body image discomfort among Instagram users, remains unaddressed.
The total settlement amount equates to approximately three to four months of profits for the Menlo Park, California-headquartered company. Meta underscored its commitment to ensuring a safe and constructive experience for teenagers on their platforms, emphasizing the significance of getting it right for parents and teens.
The settlement encompasses over $16.7 billion US allocated 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.
Furthermore, the agreement resolves lawsuits from California, Illinois, New Mexico, and Washington, D.C., related to privacy concerns stemming from the Cambridge Analytica scandal. These states will receive $459.3 million US to settle these legal disputes.
Legal expert James Speta hailed the settlement as significant, highlighting the pressure on Meta and other companies to alter business practices even in the absence of legal losses, owing to public and legislative scrutiny.
U.S. District Judge Yvonne Gonzalez Rogers approved the primary settlement, excluding Texas, lauding it as a positive step forward. The litigation was part of a broader wave of legal actions alleging that Meta and other social media firms contributed to a nationwide youth mental health crisis.
The trial in the Oakland federal court addressed claims from several states asserting that Meta violated their consumer protection laws. Additionally, the settlement addresses accusations that Meta breached the U.S. Children’s Online Privacy Protection Act by unlawfully collecting personal data from known child users without parental consent.
The settlement with Meta comes amid ongoing lawsuits against various tech companies, including Snapchat, YouTube, and TikTok, over allegations of designing platforms with addictive features for young users. Numerous cases remain pending in state courts, with potential implications for the future of social media practices.