Meta Agrees to Pay $16.68 Billion to Settle Youth Safety Case
Meta has agreed to pay a maximum of $16.68 billion to settle claims from 29 US states that it designed Facebook and Instagram to addict children. The deal, struck during the second week of the Oakland trial, brings daily usage limits and nighttime blocks for teenagers across the United States.
Key Terms of the Settlement:
- Usage Limits and Blocks: Meta will implement national daily usage limits and nighttime blocks for teenage users of Facebook and Instagram.
- Enhanced Age Assurance Measures: The company will add tools to prevent children from accessing the apps.
- Tools for Parents: Additional safeguards for parents and guardians are part of the settlement.
- Waiver of Appeal Rights: All parties waive their right to appeal once the court enters a Final Judgment.
State Allegations:
The leading states in the case are California, Colorado, Kentucky, and New Jersey. They accused Meta of designing the apps to addict children, misrepresenting platform safety, and improperly collecting personal data from child users without parental consent. All 29 states alleged violations of the federal Children’s Online Privacy Protection Act (COPPA).
Background:
The case originated from a lawsuit filed in 2023 (People of the State of California v. Meta Platforms Inc., 23-cv-05448, in the Northern District of California) seeking penalties up to $1.4 trillion initially proposed by the states and later revised down to around $200 billion.
Recent Developments:
Settlement talks were reported early on Wednesday by Olivia Carville and Madlin Mekelburg of Bloomberg, citing sources familiar with them. Instagram head Adam Mosseri testified Monday and Tuesday regarding the platform’s Take a Break feature and user engagement. He denied encouraging his team to hide anything.