Meta Platforms has reached a settlement agreement with states across the United States, agreeing to pay up to $18 billion US and implement significant changes to Facebook and Instagram. The settlement, reached during a California federal trial, addressed claims that the company intentionally designed the apps to create addiction among children, misled consumers about safety, and improperly collected children’s personal data.
Although Meta denied any wrongdoing, the company agreed to restrict teenagers’ daily usage of Facebook and Instagram to two hours, with no access allowed between midnight and 6 a.m. without parental consent. The company also committed to enhancing measures to prevent children from accessing age-restricted content, while retaining personalized recommendations and targeted advertising.
The settlement, which does not mandate the abandonment of personalized recommendations or targeted advertising, does not address certain problematic content highlighted by Meta researchers, such as posts impacting Instagram users’ body image. The total settlement payout, equivalent to about three to four months of profit for the California-based company, includes payments to 47 U.S. states, Washington, D.C., Puerto Rico, American Samoa, and the Northern Mariana Islands, with Texas separately settling for over $1 billion US.
In addition to resolving the claims related to Facebook and Instagram, the settlement also addressed lawsuits over privacy claims linked to the Cambridge Analytica scandal. Judge Yvonne Gonzalez Rogers approved the main settlement, excluding Texas, and praised the agreement as a positive step forward.
Numerous lawsuits against Meta, Snapchat, YouTube, TikTok, and their parent companies remain pending in federal and state courts, alleging that these platforms knowingly created addictive features harmful to children and teens. The settlement signifies a turning point in social media regulation, with ongoing legal battles expected to shape the industry’s future practices.