Meta to pay $16.68 billion to settle child safety lawsuits

Meta has agreed to pay up to $16.68 billion to settle lawsuits from 29 US states. They claim Meta made Facebook and Instagram addictive for children.

To resolve these claims, Meta will pay the money and make big changes to Facebook and Instagram. The states said Meta misled users about the safety of its platforms and wrongfully collected personal data from kids.

Reuters reports that the changes will include daily limits on use and restrictions on nighttime access for children. Meta will also block kids from viewing age-restricted content.

This settlement covers privacy lawsuits from California, Illinois, New Mexico, and Washington, DC. These cases are linked to the Cambridge Analytica scandal, where a consulting firm took personal data from millions of Facebook users.

The states argued that Meta broke the federal Children’s Online Privacy Protection Act. They said Meta collected personal data without notifying or getting consent from parents.

The states also accused Meta of using this data to develop machine learning and generative AI models. They will receive $459.3 million from the settlement.

These lawsuits are part of a larger wave of legal actions by states, local governments, school districts, and individuals. They accuse Meta and other social media companies of playing a role in the rise of mental health issues among young people.

Before the trial, four states, California, Colorado, Kentucky, and New Jersey, sought up to $1.4 trillion in penalties. Earlier, they had estimated the damages would be around $200 billion.

The states also wanted more penalties, significant changes to Meta’s platforms, and a ban on kids creating accounts. But Meta denied any wrongdoing in agreeing to the settlement.

Meta argued it did not mislead users because “social media addiction” is not officially recognized as a mental health disorder.

“Ensuring teens have a safe and productive experience on our platforms is an absolute imperative for Meta,” the company said in a statement on Wednesday.

“We want to get this right for parents and teens, and that’s why we partnered with state attorneys general to set a new industry standard,” it added.

Besides Meta, Snapchat, YouTube, TikTok, and their parent companies face numerous lawsuits. They are accused of knowingly designing their platforms to be addictive, contributing to the mental health crisis.