Meta Platforms has agreed to significant modifications to Facebook and Instagram, along with a monetary settlement of up to $18 billion US, to resolve allegations raised by various states in the US. The states claimed that the company intentionally designed the apps to create addiction among children, provided misleading safety information to consumers, and unlawfully gathered personal data from children using its platforms.
The settlement was reached during a high-profile California federal trial that focused on the impact of social media companies on young users. While agreeing to the settlement, the California-based company denied any wrongdoing.
Colorado Attorney General Phil Weiser emphasized that the primary goal of the case was to safeguard children. The settlement includes restrictions on teenagers’ daily usage of Facebook and Instagram, limiting it to two hours a day and blocking access from midnight to 6 a.m. unless parental consent is obtained. Meta will also implement stronger measures to prevent children from accessing age-restricted content.
Despite the settlement, Meta is not required to eliminate personalized recommendations or targeted advertising. Additionally, certain problematic content highlighted by Meta researchers, such as posts affecting Instagram users’ body image, is not addressed in the settlement.
The total payout, amounting to approximately three to four months of profits for the company, will be distributed to 47 US states, Washington, D.C., Puerto Rico, American Samoa, and the Northern Mariana Islands. Texas separately settled for over $1 billion US.
The settlement also resolves privacy-related lawsuits from California, Illinois, New Mexico, and Washington, D.C., stemming from the Cambridge Analytica scandal. Meta has faced various litigations alleging harm to youth mental health, and the recent settlement is seen as a significant step in addressing these concerns.
U.S. District Judge Yvonne Gonzalez Rogers approved the main settlement, excluding Texas, and expressed satisfaction with the progress made. The litigation landscape includes pending cases against Meta and other social media giants like Snapchat, YouTube, and TikTok, alleging intentional design of addictive features for youth. These cases are closely monitored by legal experts and public authorities to ensure the protection of young users.