Meta Platforms agreed to make major changes to Facebook and Instagram and pay up to $18 billion to resolve claims by most US states that it designed those platforms to addict children and misled consumers about their safety.
The settlements announced yesterday end a federal trial that had been one of the highest-profile tests of allegations that social media companies harm children, according to a Reuters report.
While Meta will not undergo a fundamental overhaul, the accords represent a sweeping effort to define how it serves young users.
“The focus of this case was to protect our kids,” Colorado Attorney General Phil Weiser said in a statement, “The relief we are getting in this settlement is very meaningful and well beyond what any court has ordered or is likely to order.”
Meta agreed for the next decade to restrict teenagers’ use of Facebook and Instagram to two hours a day and block all usage from midnight to 6 am.
These limits could be tightened if other social media companies adopt similar terms. Meta will also enhance measures to prevent children from accessing age-restricted content.
The settlement does not require Meta, which denied wrongdoing in agreeing to settle, to abandon personalized recommendations or targeted advertising.
The total payout represents about three to four months of profit for the Menlo Park, California-based company.
“Ensuring teens have a safe and productive experience on our platforms is an absolute imperative for Meta,” the company said in a blog post, “We want to get this right for parents and teens.”
The settlements include more than $17.6 billion of payments to 48 US states, Washington, D.C., Puerto Rico, American Samoa and the Northern Mariana Islands.
Meta will also pay $459 million to resolve states’ privacy claims related to the Cambridge Analytica scandal, where the British consulting firm collected personal data of millions of Facebook users.
YouTube and ByteDance’s TikTok impose similar protections for children. Neither of those companies was immediately available for comment, according to Reuters.
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