Meta Platforms has agreed to implement significant changes to Facebook and Instagram and pay up to $18 billion as part of a settlement to address allegations from states across the United States. The claims asserted that the company intentionally designed the apps to create addiction in children, provided misleading information about their safety, and improperly gathered personal data from children using their platforms.
The settlement was reached during a high-profile California federal trial examining accusations that social media companies were causing harm to young users. Despite agreeing to settle, the California-based company denied any wrongdoing.
Colorado Attorney General Phil Weiser emphasized the importance of safeguarding children in a statement, highlighting the meaningful relief obtained through the settlement. Meta has committed to limiting teenagers’ daily usage of Facebook and Instagram to two hours, with a complete block on usage between midnight and 6 a.m. unless parental consent is provided. These restrictions may be strengthened if other social media firms adopt similar measures.
Furthermore, Meta will enhance its efforts to prevent children from accessing age-restricted content. Notably, the settlement does not mandate Meta to abandon personalized recommendations or targeted advertising, nor does it address certain problematic content identified by Meta researchers, such as posts causing body image concerns among Instagram users.
The total settlement amount, equivalent to approximately three to four months of the company’s profits, includes over $16.7 billion 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.
In addition to addressing the children’s addiction concerns, the settlement resolves lawsuits from California, Illinois, New Mexico, and Washington, D.C., related to privacy issues stemming from the Cambridge Analytica scandal. The settlement also includes payments to resolve these lawsuits.
U.S. District Judge Yvonne Gonzalez Rogers approved the primary settlement excluding Texas, expressing satisfaction with the progress made. The claims were part of a wider wave of litigations alleging that social media companies like Meta contributed to a national youth mental health crisis.
The settlement signifies a significant step in addressing concerns raised by numerous states regarding the impact of social media platforms on children and teens. Despite the settlements, Meta, Snapchat, YouTube, TikTok, and their parent companies face numerous ongoing lawsuits over allegations of designing addictive features targeting young users, contributing to mental health issues.
As the legal battles continue, the outcomes of these settlements may pave the way for broader changes within the social media landscape to prioritize the well-being of young users.