Meta Platforms has reached a settlement in a California federal trial, agreeing to make significant changes to Facebook and Instagram and pay up to $18 billion US to resolve allegations brought by states across the United States. The claims asserted that the company intentionally designed the apps to encourage addiction among children, misled consumers about their safety, and unlawfully collected personal data from children using its platforms.
Colorado Attorney General Phil Weiser emphasized the importance of protecting children in a statement, noting that the settlement goes beyond court orders. As part of the settlement, Meta will enforce restrictions on teenagers’ use of Facebook and Instagram, limiting daily usage to two hours and blocking access from midnight to 6 a.m. without parental consent. The company will also improve measures to prevent children from accessing age-restricted content, while still maintaining personalized recommendations and targeted advertising.
The total payout, approximately equivalent to three to four months of profit for Meta, includes over $16.7 billion US in payments to 47 U.S. states and territories. Additionally, Texas has separately agreed to a settlement worth more than $1 billion US. The settlement also resolves lawsuits related to privacy claims from California, Illinois, New Mexico, and Washington, D.C., stemming from the Cambridge Analytica scandal.
U.S. District Judge Yvonne Gonzalez Rogers approved the main settlement, excluding Texas, expressing satisfaction with the progress made. The litigation was part of a broader legal battle alleging that social media companies like Meta fueled a nationwide youth mental health crisis. Despite the settlement, Meta, Snapchat, YouTube, TikTok, and their parent companies still face numerous lawsuits in federal and state courts over allegations of designing platforms with addictive features for children and teens.
As the settlement unfolds, more cases against the companies remain pending in various courts, indicating ongoing legal challenges in the realm of social media and youth well-being.
