Meta Platforms has agreed to an $18 billion settlement with 48 states over allegations that Facebook and Instagram harmed young users through addictive features and inadequate safety protections.
The agreement, approved Wednesday by a federal judge, ended a trial in Oakland, California, involving claims brought by the attorneys general of California, Colorado, Kentucky and New Jersey. The states alleged Meta knowingly pursued young users and designed addictive platforms in violation of consumer-protection laws and the federal Children’s Online Privacy Protection Act.
The settlement includes major changes for Facebook and Instagram users younger than 18. Meta will establish a default two-hour daily limit, block access from midnight to 6 a.m. through a new night mode and disable push notifications during school hours from 8 a.m. to 3 p.m.
Parents will have to approve changes to those settings.
The agreement’s unusual payment structure links part of Meta’s financial responsibility to its competitors. Meta will pay 70% of the settlement regardless of what other companies do. The remaining 30%, about $5.3 billion, will be paid only if TikTok and Google-owned YouTube establish default one-hour daily limits for minors and each pays approximately $5.3 billion to the states.
The money will be distributed in annual installments over 10 years, with each participating state’s share based on population.
The settlement includes 48 states, the District of Columbia, Puerto Rico, American Samoa and the Northern Mariana Islands. Florida and New Mexico are not currently participating.
New Mexico previously won a separate case against Meta. The company was ordered to pay $375 million in civil penalties, establish a $567 million fund to address harm to young people and introduce additional protections for minors.
Florida opted against joining the agreement, contending that the settlement was insufficient when compared with the alleged harm caused by Meta’s platforms. The state intends to continue pursuing its case.
Meta still faces thousands of lawsuits filed by school districts and individuals. Those cases seek to hold the company responsible for the design of Facebook and Instagram, rather than content posted by users, which generally receives broad protection under federal law.
Individual lawsuits alleging that social media contributed to depression, eating disorders, self-harm and deaths are also continuing. Attorneys involved in pending cases said trials remain scheduled for October.
Meta has previously lost major child-safety cases in New Mexico and Los Angeles. In the Los Angeles case, Meta and YouTube were jointly ordered to pay $6 million to a plaintiff.
Source: WSJ