Meta Platforms has agreed to implement significant changes to Facebook and Instagram and pay up to $18 billion US as part of a settlement to address allegations from states nationwide that the company engineered the apps to create addiction among children, deceived consumers about their safety, and unlawfully gathered the personal information of children on its platforms.
The settlement was achieved during a California federal trial that stood as a prominent examination of claims that social media entities harmed young users. In consenting to the settlement, the California-based corporation refuted any wrongdoing.
Colorado Attorney General Phil Weiser emphasized the importance of safeguarding children in a statement, noting that the relief secured in the settlement surpasses any court orders to date. Meta has committed to restricting teenagers’ use of Facebook and Instagram to two hours daily and prohibiting usage between midnight and 6 a.m. without parental approval for the next decade. These limitations may be tightened if other social media firms adopt similar regulations.
Additionally, Meta will bolster measures to block children from accessing age-restricted content. The settlement does not mandate Meta to discontinue personalized recommendations or targeted advertising, nor does it address certain troubling content identified by Meta researchers, such as posts on Instagram that negatively impact users’ body image.
The total payout amounts to about three to four months of profit for the Menlo Park, Calif.-based company. In a blog post, Meta reiterated its commitment to ensuring a safe and productive experience for teenagers on its platforms.
The settlement encompasses more than $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.
The comprehensive settlement also resolves legal actions by California, Illinois, New Mexico, and Washington, D.C., related to privacy claims stemming from the Cambridge Analytica scandal. These states will receive $459.3 million US to resolve these lawsuits.
According to James Speta, a telecommunications and internet policy expert at Northwestern University, the settlement carries significant implications, as Meta and other companies faced mounting pressure to alter their practices irrespective of the lawsuit outcomes.
Judge Yvonne Gonzalez Rogers has indicated approval of the primary settlement, excluding Texas. She commended the settlement as a positive step forward during a hearing, expressing relief that the trial would not need to proceed further.
The settlement follows Meta’s loss in a pivotal lawsuit filed by New Mexico, where the company was ordered to pay substantial fines for misleading consumers about platform safety. Meta and other social media giants continue to confront numerous lawsuits alleging they knowingly designed their platforms to be addictive to minors, fueling mental health concerns.
As the settlement unfolds, approximately 30 states have initiated lawsuits against these companies in state courts. Meta’s recent legal setbacks underscore the evolving landscape of accountability for social media entities in safeguarding users, particularly minors, from potential harms.