Meta Platforms has agreed to implement significant changes to Facebook and Instagram and pay up to $18 billion in a settlement with numerous states across the United States. The settlement, reached during a California federal trial, addresses claims that the company engineered the apps to foster addiction among children, provided misleading information about their safety, and unlawfully collected children’s personal data on its platforms. Despite agreeing to settle, the California-based company has denied any wrongdoing.
Colorado Attorney General Phil Weiser emphasized the settlement’s focus on safeguarding children, stating that the relief obtained surpasses any previous court orders. As part of the agreement, Meta will restrict teenagers’ daily use of Facebook and Instagram to two hours, with usage prohibited from midnight to 6 a.m. unless parental consent is granted. These usage limits may be strengthened if other social media companies follow suit. Additionally, Meta will enhance measures to prevent children from accessing age-restricted content, although the settlement does not mandate the cessation of personalized recommendations or targeted advertising.
The settlement, which amounts to roughly three to four months of profit for the company, includes over $16.7 billion in payments to 47 U.S. states and territories. Notably, Texas has secured a separate settlement exceeding $1 billion. The agreement also resolves privacy-related lawsuits by California, Illinois, New Mexico, and Washington, D.C., stemming from the Cambridge Analytica scandal, where personal data of Facebook users was compromised.
U.S. District Judge Yvonne Gonzalez Rogers has provisionally approved the main settlement, excluding Texas, commending it as a positive step forward. The lawsuit formed part of a broader legal battle initiated by states, local authorities, school districts, and individuals, accusing Meta and other social media companies of contributing to a national youth mental health crisis. The trial focused on claims from a handful of states that Meta breached their consumer protection laws and violated the Children’s Online Privacy Protection Act by collecting data from underage users without parental consent.
Meta, Snapchat, YouTube, TikTok, and their respective parent companies continue to face numerous lawsuits at both the federal and state levels, alleging that their platforms were deliberately designed to be addictive to young users. The settlements mark progress in addressing concerns regarding social media’s impact on youth mental health, with ongoing litigation and potential changes to industry practices expected to follow.