Meta reaches $16.68bn settlement over social media harms
Meta Platforms has agreed to pay a maximum $16.68 billion and make major changes to Facebook and Instagram to resolve claims by states across the US that it designed those platforms to addict children, misled consumers about their safety and improperly collected children's personal data.
Meta Platforms has reached a $16.68 billion settlement to resolve claims brought by 29 US states alleging the company designed Facebook and Instagram to addict children and mishandled their personal data. This settlement ends a high-profile federal trial that tested allegations against social media firms. The company will impose daily usage limits and restrict nighttime usage for children, as well as enhance measures to prevent access to restricted content.
Although Meta denies wrongdoing, the settlement also resolves privacy claims related to the Cambridge Analytica scandal, with California, Illinois, New Mexico, and Washington, DC, receiving $459.3 million. The claims were part of a broader wave of litigation accusing Meta and other social media companies of contributing to a youth mental health crisis.
The trial covered claims from multiple states and federal laws, with Meta arguing it could not be blamed for addiction since it's not a recognized psychiatric condition.
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