Meta Platforms has agreed to significant modifications for Facebook and Instagram, along with a payment of up to $18 billion US to settle claims made by states across the United States. The allegations included designing the apps to foster addiction in children, deceiving consumers about their safety, and improperly collecting personal data from children on their platforms.
The settlement was reached in a California federal trial, marking a high-profile test of social media companies’ impact on young users. Despite agreeing to settle, the California-based company denied any wrongdoing.
Colorado Attorney General Phil Weiser emphasized the importance of protecting children in a statement, noting that the relief obtained in the settlement surpasses any court orders. As part of the agreement, Meta will restrict teenagers’ daily usage of Facebook and Instagram to two hours and block access between midnight and 6 a.m. unless parental consent is given. These restrictions may be tightened if other social media companies adopt similar terms.
Enhancements will also be made 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 impacting body image on Instagram.
The total payout, equivalent to around three to four months of profit for Meta, includes over $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.
In addition to addressing the allegations related to social media addiction in young users, the settlement also resolves privacy claims linked to the Cambridge Analytica scandal. California, Illinois, New Mexico, and Washington, D.C., will receive $459.3 million US to resolve these lawsuits.
According to Northwestern University law professor James Speta, the settlement signifies a significant development as Meta and other companies faced pressure to alter business practices regardless of the trial outcomes. The imposed restrictions aim to reshape the user experience on Instagram and Facebook with the goal of reducing engagement.
U.S. District Judge Yvonne Gonzalez Rogers approved the main settlement, excluding Texas, and expressed satisfaction with the progress made. The lawsuits were part of a wider legal wave against social media companies, alleging their platforms contributed to a national youth mental health crisis.
Furthermore, Meta, Snapchat, YouTube, TikTok, and their parent companies are still confronted with numerous lawsuits in federal and state courts over claims of designing addictive features for children and teens, exacerbating mental health issues. Thousands of pending cases against these companies underscore the ongoing legal challenges in addressing these concerns.
The settlement follows Meta’s previous losses in lawsuits related to misleading consumers about platform safety and creating a public nuisance. Despite the settlements, Meta and other companies plan to appeal the verdicts, indicating ongoing legal battles ahead.