Meta reaches $16.68 billion settlement over social media harms to children
The deal was reached during a California federal court trial over claims brought by 29 states, averting one of the highest-profile tests yet of allegations that social media companies harmed young users. Just days before jury selection began on August 12, a federal appeals court declined to halt the trial.
Meta Platforms has agreed to pay a maximum of $16.68 billion and implement significant changes to Facebook and Instagram to settle claims from 29 US states that the company knowingly designed its platforms to addict children, mislead consumers about safety, and improperly collect personal data. The settlement resolves a high-profile trial and ends litigation over privacy concerns related to the Cambridge Analytica scandal.
Meta will implement daily usage limits and nighttime restrictions for children and enhance measures to prevent access to age-restricted content. The company denied wrongdoing in agreeing to settle. The claims were part of a larger wave of litigation alleging that social media companies harmed youth mental health. Meta, Snapchat, YouTube, and TikTok continue to face numerous lawsuits for alleged platform design to addict children.
The federal cases were consolidated before a federal judge in Oakland, covering claims from California, Colorado, Kentucky, and New Jersey. Earlier trials resulted in verdicts favoring plaintiffs, but the companies plan to appeal.
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