Meta reaches $16.68bn settlement over social media harms to children

Meta reaches $16.68bn settlement over social media harms to children US states settle social media claims over harm to young users.

Key points

• Before the trial began on August 18, Meta remarked California, Colorado, Kentucky and New Jersey were seeking up to $1.4 trillion in penalties.
• The trial in the Oakland, California, federal court covered claims from California, Colorado, Kentucky and New Jersey that Meta violated their state laws protecting consumers.
• Meta Platforms agreed to pay a maximum $16.68 billion and create major changes to Facebook and Instagram to resolve claims by states throughout the U.S.
• Earlier this year, Meta lost both phases of a ⁠landmark lawsuit brought by New Mexico.
• Additionally in March, the first trial over an individual's claims against Meta and Google concluded with a verdict in the plaintiff's favor.

Meta Platforms agreed to pay a maximum $16.68 billion and create major changes to Facebook and Instagram to resolve claims by states throughout the U.S. That the firm designed those platforms to addict children, ‌misled consumers concerning their safety and improperly collected children's personal data.

Notably, the settlement resolves claims brought by 29 U.S. States, and will end a federal trial that had been one of the highest-profile tests yet of allegations that social media firms harmed young users.

Meta will impose daily usage limits and restrict nighttime usage by children who employ Facebook and Instagram, and enhance measures to prevent children from accessing age-restricted content. The Menlo Park, California-based firm denied wrongdoing in agreeing to settle.

Wednesday's settlement additionally resolves lawsuits by California, Illinois, New Mexico and Washington, D.C., over ⁠privacy claims related to the Cambridge Analytica scandal, where the consulting firm collected personal data of millions of Facebook users. Those states will receive $459.3 million to resolve those lawsuits. Shares of Meta rose 2.3% in early trading.

Meanwhile, the claims were part of a broader wave of litigation brought by states, local governments, school districts and individuals alleging that Meta and other social media firms fueled a nationwide youth mental health crisis.

Meanwhile, the trial in the Oakland, California, federal court covered claims from California, Colorado, Kentucky and New Jersey that Meta violated their state laws protecting consumers.

It additionally covered claims from 29 states that Meta violated the federal Children's Online Privacy Protection Act by collecting personal data from users it knew were children without parental notification or consent, and using the data to train machine learning and generative AI models.

Meta has long argued it could not have misled consumers regarding whether ‌its services ⁠were addictive as "social media addiction" is not a recognized psychiatric condition.

Before the trial began on August 18, Meta remarked California, Colorado, Kentucky and New Jersey were seeking up to $1.4 trillion in penalties. The states suggested that the figure would be closer to $200 billion. A MENTAL HEALTH CRISIS.

Meta, Snapchat and its parent Snap, YouTube and its parent Alphabet, and TikTok and its parent ByteDance still face thousands of lawsuits in federal and state courts over claims they knowingly designed their platforms to have features that are addictive to children and teens, fueling a mental health crisis.

Meanwhile, the federal cases were consolidated before U.S. District Judge Yvonne Gonzalez Rogers in Oakland, and include lawsuits brought by individuals, school districts and state governments.

Earlier this year, Meta lost both phases of a ⁠landmark lawsuit brought by New Mexico. A jury in March ordered it to pay $375 million after finding it had misled consumers regarding the safety of its platforms. On August 6, a judge discovered Meta had created a public nuisance and ordered it to pay an further $567 million and implement youth-safety ⁠measures.

Additionally in March, the first trial over an individual's claims against Meta and Google concluded with a verdict in the plaintiff's favor. A Los Angeles jury discovered the businesses liable for plaintiff Kaley G.M.'s depression and anxiety and ordered them to pay a combined $6 million in damages. The firms have stated they will appeal those verdicts.

In short, meta reaches $16.68bn settlement over social media harms to children is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.