Meta Platforms has agreed to implement significant changes to Facebook and Instagram, along with a payment of up to $18 billion US to settle allegations made by states across the United States. The claims asserted that the company deliberately designed the apps to create addiction among children, misled consumers about their safety, and improperly gathered personal data from children using its platforms.
The settlement was reached during a high-profile California federal trial that examined accusations of social media companies causing harm to young users. Despite agreeing to the settlement, the California-based company denied any wrongdoing.
Colorado Attorney General Phil Weiser emphasized the importance of protecting children in a statement, stating that the relief obtained in the settlement surpasses what any court might have ordered. As part of the agreement, Meta has committed to limiting teenagers’ use of Facebook and Instagram to two hours per day and blocking access completely from midnight to 6 a.m. unless parental consent is provided. These restrictions may be tightened if other social media companies adopt similar guidelines.
Meta will also enhance measures to prevent children from accessing age-restricted content. Notably, the settlement does not mandate Meta to discontinue personalized recommendations or targeted advertising, nor does it address specific problematic content identified by Meta researchers, such as posts that negatively impact Instagram users’ body image.
The total settlement amount, approximately equivalent to three to four months of the company’s profits, includes payments exceeding $16.7 billion US to 47 U.S. states, Washington, D.C., Puerto Rico, American Samoa, and the Northern Mariana Islands. Texas separately reached a settlement exceeding $1 billion US.
Furthermore, the settlement resolves lawsuits from California, Illinois, New Mexico, and Washington, D.C., related to privacy claims stemming from the Cambridge Analytica scandal. These states will receive $459.3 million US to settle these lawsuits.
U.S. District Judge Yvonne Gonzalez Rogers approved the main settlement, excluding Texas, and praised the agreement as a positive step forward during a hearing. The claims against Meta were part of a broader wave of litigation accusing social media companies of contributing to a nationwide youth mental health crisis.
The lawsuit covered allegations from several states that Meta violated state laws protecting consumers and the U.S. Children’s Online Privacy Protection Act by collecting personal data from children without parental consent. The settlement also comes amid ongoing litigation against Meta, Snapchat, YouTube, TikTok, and their parent companies over similar allegations of designing addictive features for children and teens.
Numerous pending cases against these companies at both federal and state levels highlight the ongoing legal challenges they face regarding the impact of their platforms on youth mental health.