Meta Platforms has agreed to implement significant changes to Facebook and Instagram while also paying up to $18 billion US to settle claims made by states in the U.S. The allegations asserted that the company intentionally designed the apps to create addiction among children, misled consumers regarding their safety, and unlawfully gathered personal data from underage users.
The settlement was reached during a high-profile trial in California, where the social media giant denied any wrongdoing. As part of the agreement, Meta will impose restrictions on teenagers’ daily usage of Facebook and Instagram, limiting it to two hours per day and blocking access from midnight to 6 a.m. unless parental consent is given. These limitations may be strengthened if other social media platforms adopt similar measures.
Furthermore, Meta will enhance safeguards 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 involving body image concerns among Instagram users.
The total settlement, which amounts to about three to four months of the company’s profits, includes over $16.7 billion US in payments to various U.S. states and territories. Additionally, Texas has reached a separate settlement exceeding $1 billion US.
The agreement also resolves privacy-related lawsuits from California, Illinois, New Mexico, and Washington, D.C., stemming from the Cambridge Analytica scandal. These states will collectively receive $459.3 million US to settle their legal claims.
The main settlement, pending approval by U.S. District Judge Yvonne Gonzalez Rogers, was deemed a positive step forward during a recent hearing. The judge indicated a favorable stance towards granting approval and expressed satisfaction with the terms of the settlement.
Moreover, Meta, along with other tech companies including Snapchat, YouTube, TikTok, and their respective parent companies, faces numerous lawsuits at both federal and state levels alleging that their platforms were purposely designed to be addictive to young users, contributing to mental health issues. These cases are part of a broader legal battle against social media companies accused of fueling a youth mental health crisis.