Meta Platforms has consented to implement significant modifications to Facebook and Instagram, alongside a financial settlement amounting to as much as $18 billion US. This agreement aims to address allegations from various states across the United States, claiming that the company intentionally designed its applications to foster addiction among children, deceived users regarding their safety, and unlawfully gathered personal information from underage users.
The settlement was established during a high-profile federal trial in California, which represented one of the most notable examinations of claims that social media platforms have detrimental effects on young individuals.
While reaching this settlement, the California-based firm maintained that it had not engaged in any wrongdoing.
“The purpose of this case was to safeguard our children,” stated Colorado Attorney General Phil Weiser. “The relief we have achieved through this settlement is exceptionally significant and exceeds what any court has mandated or is likely to mandate.”
For the next ten years, Meta has agreed to limit the time teenagers can spend on Facebook and Instagram to a maximum of two hours daily and to prohibit all access from midnight until 6 a.m., unless parental consent is obtained. These restrictions could be made more stringent should other social media platforms implement similar regulations.
Additionally, Meta will improve its measures to block children from viewing content that is age-restricted. The agreement does not necessitate the elimination of personalized recommendations or targeted advertisements. It also does not tackle certain content that Meta’s researchers found particularly concerning, such as posts that caused discomfort regarding body image among Instagram users.
Meta, which owns Instagram and Facebook, agreed to a $16.68-billion US settlement over claims brought by 29 states that it designed its social media platforms to harm children. Meta agreed to make app changes for underage users, including imposing daily usage limits and preventing access to age-restricted content
The total amount to be paid represents approximately three to four months of profit for the company located in Menlo Park, California.
“Ensuring that teenagers have a safe and beneficial experience on our platforms is absolutely critical for Meta,” the company expressed in a blog post. “We want to ensure that we are doing right by parents and teens.”
The settlements involve over $16.7 billion US in payments to 47 states, Washington, D.C., Puerto Rico, American Samoa, and the Northern Mariana Islands, while Texas has reached a separate settlement exceeding $1 billion US.
Settlement Scope
The settlement reached on Wednesday also addresses lawsuits from California, Illinois, New Mexico, and Washington, D.C., concerning privacy issues linked to the Cambridge Analytica incident, where personal data from millions of Facebook users was collected by the consulting firm.
These states will receive $459.3 million US to settle those claims.
“This is a significant development,” commented James Speta, a law professor at Northwestern University who focuses on telecommunications and internet policy.
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“Meta and other firms have been under pressure to modify their business practices, regardless of the outcome of the lawsuits, from the public, Congress, and state legislatures,” he stated.
“These limitations will alter the experience on Instagram and Facebook, with the intention of decreasing engagement.”
Meta agreed to a $16.68-billion US settlement over claims it designed its social media platforms such as Facebook and Instagram to make them addictive to children. The settlement was reached Wednesday during a California federal trial. Tech analyst and journalist Carmi Levy breaks down the settlement and what it could mean for Canada.
Judge Anticipates Approval
U.S. District Judge Yvonne Gonzalez Rogers granted approval for the main settlement, which excludes Texas, late on Wednesday.
During a hearing, she referred to the settlement as “a positive progression” and expressed her satisfaction to both Meta’s attorneys and the states, stating: “I am quite pleased to avoid completing this trial.”
The allegations were part of a broader wave of legal actions initiated by states, local governments, school districts, and individuals claiming that Meta and other social media companies contributed to a nationwide youth mental health crisis.
This trial in Oakland, California, covered allegations from California, Colorado, Kentucky, and New Jersey that Meta breached their state laws aimed at consumer protection.
Parents hold pictures of their deceased children during a protest against social media platforms outside the Ronald V. Dellums Federal Building and U.S. Courthouse on Aug. 18 in Oakland, Calif. (Noah Berger/The Associated Press)
The case also included claims from 29 states alleging that Meta breached the U.S. Children’s Online Privacy Protection Act by gathering personal information from users it recognized as children without parental consent or notification, using this data to train machine learning and generative AI models.
The company contended that it could not mislead users about the addictive nature of its services, as social media addiction is not classified as a recognized psychiatric disorder.
In a pre-trial filing, Meta indicated that California, Colorado, Kentucky, and New Jersey were pursuing penalties of up to $1.4 trillion US. Prior to the trial, the states suggested that the amount would be closer to $200 billion US. They were also seeking additional financial damages, along with a directive for Meta to implement significant changes to its platforms and to prohibit children from creating accounts.
Additional Cases Ongoing
Meta, Snapchat and its parent company Snap, YouTube along with its parent Alphabet, and TikTok and its parent ByteDance are still facing thousands of lawsuits in both federal and state courts, alleging that they knowingly designed their platforms with features that are addictive for children and adolescents, contributing to a mental health crisis.
The federal cases have been consolidated under U.S. District Judge Yvonne Gonzalez Rogers in Oakland and encompass lawsuits filed by individuals, school districts, and state governments.
Many more cases against these companies remain pending in state courts. A judge in Los Angeles is overseeing thousands of lawsuits filed by individuals claiming they or their loved ones suffered harm due to the designs of these platforms.
Meta has agreed to pay up to $18 billion US to settle a major lawsuit launched by several U.S. states over social media addiction and security for children. The tech giant has also agreed to make changes to its platforms, including Facebook and Instagram.
Approximately 30 states have initiated lawsuits against these companies in state courts, according to court records. A trial has been ongoing in Nashville since July regarding claims brought by the state against Meta.
This settlement follows Meta’s defeat in both phases of a significant lawsuit filed by New Mexico. A jury in March ordered the company to pay $375 million US after determining it had misled consumers about the safety of its platforms. On August 6, a judge ruled that Meta had created a public nuisance, ordering it to pay an additional $567 million US and to implement youth safety measures.
In March, the initial trial regarding an individual’s claims against Meta and Google concluded with a verdict favoring the plaintiff. A jury in Los Angeles found the companies liable for the depression and anxiety of plaintiff Kaley G.M., awarding a combined total of $6 million US in damages.
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The companies have indicated they plan to appeal these verdicts. All four companies resolved the initial case set for federal trial, where a Kentucky school district claimed they were responsible for harm caused to students. The Breathitt County School District was expected to receive a total of $27 million, according to public records.
New Mexico and Florida were not included in Wednesday’s settlements.
“The payments to the states are trivial compared to the extensive damage that Meta’s profit-driven addictive features have caused to our children,” remarked Florida Attorney General James Uthmeier. “We’ll see them at trial.”