New Delhi, August 26: Meta Platforms, a leading player in the social media sector, has agreed to settle a significant lawsuit filed by several U.S. states. The lawsuit accused Facebook and Instagram of being addictive for children and teenagers, misleading users about platform safety, and improperly collecting minors’ personal data. According to court documents, Meta will pay up to $16.68 billion as part of this settlement.
This agreement emerged during a lawsuit in a federal court in California, where 29 U.S. states had made claims against Meta. With this settlement, one of the most discussed legal cases regarding the impact of social media on children and teenagers has reached a conclusion.
As part of the agreement, Meta will implement several new safety measures for teenagers using Facebook and Instagram in the U.S. These measures will include setting daily usage time limits and restricting access to the platforms during nighttime.
Despite the settlement, Meta has denied any wrongdoing or legal liability.
Following the announcement of the settlement, investors reacted positively, with Meta’s shares rising nearly 4.4% in pre-market trading.
The lawsuit alleged that Meta violated consumer protection laws in California, Colorado, Kentucky, and New Jersey. The states also claimed that the company collected personal information from users it knew to be children, without providing adequate notice to parents or obtaining their consent, in violation of the Children’s Online Privacy Protection Act.
Additionally, the lawsuit included allegations that the company used children’s data to train machine learning and generative AI models.
Throughout the proceedings, Meta denied these allegations and stated that it has taken extensive measures to ensure the safety of young users on its platforms. The company also argued that it cannot mislead consumers by labeling its platforms as “addictive,” as “social media addiction” is not formally recognized as a mental health condition.
Before the trial began, Meta indicated that some states were seeking penalties of up to $1.4 trillion, although the states later suggested that the actual amount could be closer to $200 billion.
Moreover, state governments were also seeking additional compensation and judicial orders that would require Meta to make significant changes to its platforms, potentially making it more difficult to create accounts for children.
This settlement comes at a time when there is an ongoing debate worldwide about the impact of social media on the mental health of children and teenagers.
In addition to Meta, Snap, Alphabet (the parent company of YouTube), and ByteDance (the parent company of TikTok) are also facing thousands of lawsuits. These cases allege that these platforms were deliberately designed with features that keep children and teenagers glued to screens for extended periods and encourage excessive use.
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