Meta Platforms has agreed to significant alterations to Facebook and Instagram, as well as to a monetary settlement of up to $18 billion US, to address claims made by various states in the United States. These claims alleged that the company intentionally designed the apps to create addiction among children, provided misleading information about their safety, and unlawfully gathered personal data from children using their platforms.
The settlement was reached during a high-profile California federal trial that examined accusations of harm caused to young users by social media companies. Despite agreeing to the settlement, the California-based company denied any wrongdoing.
Colorado Attorney General Phil Weiser emphasized the importance of protecting children in a statement, stating that the relief obtained through the settlement surpasses what any court would likely order. As part of the agreement, Meta committed to limiting teenagers’ daily use of Facebook and Instagram to two hours, with no usage allowed between midnight and 6 a.m. unless parental consent is given. These restrictions may become stricter if other social media companies adopt similar guidelines.
Additionally, Meta will implement enhanced measures to prevent children from accessing age-restricted content. Notably, the settlement does not mandate Meta to discontinue personalized recommendations or targeted advertising, nor does it address certain problematic content highlighted by Meta researchers, such as posts that negatively impact Instagram users’ body image.
The total settlement amount equates to approximately three to four months of profit for the Menlo Park, Calif.-based company. Meta expressed its commitment to ensuring a safe and productive experience for teenagers on its platforms in a blog post, stating the importance of getting it right for parents and teens.
The settlements include payments exceeding $16.7 billion US to 47 U.S. states, Washington, D.C., Puerto Rico, American Samoa, and the Northern Mariana Islands, with Texas separately reaching a settlement exceeding $1 billion US.
Furthermore, the settlement addressed lawsuits from California, Illinois, New Mexico, and Washington, D.C., related to privacy allegations stemming from the Cambridge Analytica scandal. These states will receive $459.3 million US to resolve their respective lawsuits.
Legal experts view the settlement as significant, with Northwestern University law professor James Speta noting that Meta and other companies faced pressure to revise business practices irrespective of the lawsuit outcomes, due to public and legislative demands.
U.S. District Judge Yvonne Gonzalez Rogers approved the primary settlement, excluding Texas, commending it as a positive step forward during a hearing. The claims against Meta were part of a broader wave of litigation alleging that social media companies like Meta had contributed to a nationwide youth mental health crisis.
The settlement follows Meta’s loss in a landmark lawsuit brought by New Mexico, where it was ordered to pay substantial penalties for misleading consumers about platform safety. Meta and other tech giants, including Snapchat, YouTube, and TikTok, continue to face numerous lawsuits over allegations of designing platforms with addictive features harmful to children.
The settlement marks an important development in the ongoing legal battles against tech companies, with more cases pending in state and federal courts. Despite the settlements, Meta and other tech giants remain entangled in legal disputes surrounding the impact of their platforms on youth mental health and well-being.