Meta Platforms has agreed to implement significant changes to Facebook and Instagram, along with a payment of up to $18 billion US, as part of a settlement to address allegations from states across the United States. These claims asserted that the company intentionally designed the apps to create addiction among children, provided misleading information about their safety, and unlawfully collected personal data from underage users.
The resolution was reached during a high-profile California federal trial that focused on accusations that social media companies were causing harm to young users. While Meta agreed to the settlement, it 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 goes beyond what any court would likely mandate.
As part of the agreement, Meta has committed to limiting teenagers’ daily usage of Facebook and Instagram to two hours and blocking access between midnight and 6 a.m. unless parental consent is provided. These restrictions may become stricter if other social media platforms adopt similar measures.
Furthermore, Meta will enhance its efforts to prevent children from accessing age-restricted content. Notably, the settlement does not require Meta to discontinue personalized recommendations or targeted advertising, nor does it address certain problematic content identified by Meta researchers, such as posts affecting Instagram users’ body image.
The total settlement amount, which includes payments to 47 U.S. states, Washington, D.C., Puerto Rico, American Samoa, and the Northern Mariana Islands, represents approximately three to four months of profit for the company based in Menlo Park, California.
In response to the settlement, Meta expressed its commitment to ensuring a safe and productive experience for teenagers on its platforms. The company highlighted the importance of getting it right for both parents and teens.
The settlement also resolves privacy-related lawsuits from California, Illinois, New Mexico, and Washington, D.C., stemming from the Cambridge Analytica scandal, where personal data of millions of Facebook users was collected. These states will collectively receive $459.3 million US to settle their lawsuits.
Legal experts view the settlement as significant, noting that Meta and other companies were under pressure to alter their business practices even before the lawsuits. The imposed restrictions are aimed at altering the user experience on Instagram and Facebook to reduce engagement.
U.S. District Judge Yvonne Gonzalez Rogers approved the primary settlement, excluding Texas, and commended the progress made. The claims against Meta were part of a broader wave of litigation alleging that social media companies contributed to a nationwide youth mental health crisis.
The trial in the federal court in Oakland, California, addressed claims from several states that Meta violated consumer protection laws, as well as allegations that the company breached the U.S. Children’s Online Privacy Protection Act by collecting personal data from underage users without parental consent.
Despite the settlement, Meta, Snapchat, YouTube, TikTok, and their parent companies face numerous pending lawsuits at both federal and state levels, accusing them of purposely designing addictive features for children and teenagers.
The settlement follows Meta’s losses in prior legal battles, including a landmark lawsuit in New Mexico that resulted in substantial financial penalties and the implementation of youth safety measures. The company plans to appeal adverse verdicts from previous trials.
Notably, the first trial over individual claims against Meta and Google concluded with a jury ruling in favor of the plaintiff, awarding damages for mental health issues attributed to the platforms’ design. The ongoing legal battles underscore the broader concerns surrounding social media companies’ impact on youth mental health.