Meta Platforms has agreed to implement significant changes to Facebook and Instagram and pay up to $18 billion US to settle claims made by multiple states in the United States. The states alleged that the company purposely designed the apps to foster addiction in children, provided misleading safety information to consumers, and improperly collected personal data from children using its platforms.
The settlement 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, based in California, denied any wrongdoing, it agreed to the terms of the settlement.
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 could have ordered. As part of the agreement, Meta will enforce restrictions on teenagers’ daily usage of Facebook and Instagram for the next decade, limiting it to two hours a day and blocking access between midnight and 6 a.m. without parental consent. These limitations may be adjusted if other social media companies adopt similar measures.
In addition to imposing usage restrictions, Meta will enhance its efforts 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 specific problematic content identified by Meta researchers, such as posts on Instagram that negatively impact body image.
The total settlement amount, which includes payments of over $16.7 billion US to 47 U.S. states and territories, represents approximately three to four months of profit for Meta. Texas separately reached a settlement exceeding $1 billion US.
The settlement also resolves privacy-related lawsuits from California, Illinois, New Mexico, and Washington, D.C., concerning the Cambridge Analytica scandal. In these cases, the states will collectively receive $459.3 million US to settle their claims.
U.S. District Judge Yvonne Gonzalez Rogers approved the main settlement agreement, excluding Texas, and expressed satisfaction with the progress made. The litigation against Meta and other social media companies is part of a broader legal battle initiated by states, local entities, and individuals alleging that these platforms contributed to a nationwide crisis in youth mental health.
The settlement with Meta is a significant development, but lawsuits against other tech giants like Snapchat, YouTube, and TikTok are ongoing. These companies face numerous legal challenges alleging that they intentionally designed their platforms to be addictive to young users, exacerbating mental health issues.
Despite the settlement, Meta and other companies continue to face legal battles, with more cases pending in both federal and state courts. The outcomes of these lawsuits will likely have far-reaching implications for the tech industry’s practices in safeguarding youth online.
