Meta Settles for Record $16.7B Over Alleged Teen Harms on Social Media

Meta Platforms has agreed to a record-breaking settlement of $16.68 billion in response to a significant lawsuit filed by 29 U.S. states. The lawsuit alleged that Meta intentionally designed Facebook and Instagram to be addictive to children and teenagers, misled the public about the safety of their platforms, and improperly collected personal data from minors.

The settlement was finalized on August 26, during the second week of a high-profile federal jury trial in Oakland, California, overseen by U.S. District Judge Yvonne Gonzalez Rogers. The states had initially sought penalties that could have amounted to trillions of dollars. Despite agreeing to the settlement, Meta has denied any wrongdoing.

In addition to the financial compensation — one of the largest ever in a U.S. tech case — Meta has also agreed to implement significant changes to how teenagers interact with its apps. These changes include daily usage limits, nighttime blocking, improved age-verification tools, and restrictions on features such as post-like counts and beauty filters for teen users. An independent auditor will be appointed to ensure compliance.

California Attorney General Rob Bonta hailed the agreement as a step towards “real change, real transparency, and real enforceable protections for children.” Analysts have likened the significance of the deal to the landmark 1990s tobacco settlement, suggesting it could fundamentally alter how social media platforms operate for young users across the United States.

Despite this settlement, Meta, Snap, TikTok, and YouTube are still facing thousands of additional lawsuits in federal and state courts over similar child safety allegations.

Source: Reuters via Yahoo Finance – Meta reaches $16.68 billion settlement over social media harms to children

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