Meta agrees to pay up to $18 billion to end trial over Instagram, Facebook child addiction claims
This case dates to 2023, when 29 states sued Meta alleging it built infinite scroll, push notifications, and recommendation algorithms specifically to maximize how long kids stayed on its apps, misled the public about the harm, and collected children's data without parental consent in violation of COPPA. Read Entire Article
Meta has agreed to pay up to $18 billion to settle a lawsuit accusing the company of designing Instagram and Facebook to addict children. The settlement ends a trial that began on August 18 in Oakland and was expected to continue through early October. The deal, which covers 47 states, the District of Columbia, and several territories, does not require Meta to turn off algorithmic recommendations by default or limit targeted advertising to teens.
California expects between $1.5 billion and $2.1 billion in compensation, while Maryland is due up to $327 million. Critics argue the changes are not drastic enough, but officials frame the settlement as the largest penalty a social platform has faced and a significant consumer-protection win. Meta's Legal Officer emphasized the importance of other social media platforms adhering to the settlement terms to prevent users from moving to alternative apps.
The industry impact is significant, as Meta's success in the settlement depends on TikTok and YouTube following suit.
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