Meta Platforms has agreed to a significant settlement to address claims that Facebook and Instagram were designed to foster addiction in children, misled consumers about safety, and improperly collected children’s personal data. The settlement, reached during a California federal trial, involves payment of up to $18 billion US and includes various changes to the platforms.
Despite denying wrongdoing, Meta has committed to imposing restrictions on teenagers’ daily use of Facebook and Instagram for the next ten years. These restrictions include limiting usage to two hours a day and blocking access from midnight to 6 a.m. without parental consent. Additionally, Meta will enhance measures to prevent children from accessing age-restricted content.
The settlement does not require Meta to eliminate personalized recommendations or targeted advertising. It also does not directly address certain problematic content identified by Meta researchers. The total payout, equivalent to about three to four months of profit for Meta, will be distributed to 47 U.S. states and territories, with Texas reaching a separate settlement worth over $1 billion US.
In addition to the child addiction claims, the settlement also resolves privacy-related lawsuits stemming from the Cambridge Analytica scandal. Meta will pay $459.3 million US to California, Illinois, New Mexico, and Washington, D.C. for these claims. The settlement has been deemed far-reaching by legal experts, with Meta and other companies facing pressure to alter their practices amid ongoing litigation and public scrutiny.
U.S. District Judge Yvonne Gonzalez Rogers has approved the main settlement, excluding Texas, commending it as a positive step. The broader wave of litigation against Meta and other social media companies focuses on allegations of fueling a youth mental health crisis. The settlement marks a significant development, with more cases pending in both federal and state courts against various tech giants.
The settlement follows Meta’s previous legal setbacks, including a jury-ordered payment in March and subsequent court rulings. Despite the settlements, appeals are expected as the legal battles continue. Florida and New Mexico were not part of the recent agreements, indicating a prolonged legal fight ahead.
