Meta Platforms has agreed to significant alterations to Facebook and Instagram, along with a payment of up to $18 billion US, in a settlement to address allegations from multiple states in the United States. The states claimed that the company intentionally designed the apps to foster addiction among children, misrepresented safety information to consumers, and inappropriately gathered personal data from children on its platforms.
The settlement, reached during a high-profile California federal trial, saw Meta denying any wrongdoing. Colorado Attorney General Phil Weiser emphasized the importance of protecting children in this case, stating that the settlement’s terms go beyond what any court had previously ordered.
As part of the settlement, Meta will impose restrictions on teenagers’ daily use of Facebook and Instagram, limiting it to two hours per day with a block on usage from midnight to 6 a.m. without parental consent. These limitations may become stricter if other social media companies adopt similar regulations. Additionally, Meta will enhance measures to prevent children from accessing age-restricted content.
While the settlement does not require Meta to abandon personalized recommendations or targeted advertising, it does not address specific problematic content highlighted by Meta researchers, such as posts on Instagram that negatively impact body image.
The total payout, equivalent to about three to four months of Meta’s profits, includes over $16.7 billion US in payments to various U.S. states and territories. Notably, Texas reached a separate settlement exceeding $1 billion US.
The settlement also resolves privacy-related lawsuits by several states, including California, Illinois, New Mexico, and Washington, D.C., connected to the Cambridge Analytica scandal. These states will receive $459.3 million US to settle those claims.
According to Northwestern University law professor James Speta, the settlement signifies a significant development, with Meta and other companies facing increasing pressure to modify business practices. The imposed restrictions aim to alter the user experience on Instagram and Facebook, ultimately reducing engagement.
U.S. District Judge Yvonne Gonzalez Rogers, who approved the main settlement, expressed satisfaction with the resolution, highlighting it as a positive step forward. The claims against Meta were part of a broader legal battle alleging that social media platforms contributed to a youth mental health crisis nationwide.
Despite the settlement, Meta, along with other tech giants like Snapchat, YouTube, and TikTok, still faces numerous lawsuits in federal and state courts over allegations of designing platforms with addictive features for children and teens. These cases are consolidated before Judge Yvonne Gonzalez Rogers in Oakland, with additional lawsuits pending in state courts.