Photo by Jeff Chiu/AP
Under the agreement, the company committed to implementing daily usage limits on its platforms for teenagers and a nighttime account lockout, according to Reuters. Meta must also change a number of practices related to the processing of minors’ data.
The lawsuit consolidated claims from 29 states. Authorities accused Meta of intentionally using features on its platforms that could lead to addiction in children, and of collecting minors’ personal data without proper parental consent. Meta denies the allegations.
The scale of potential claims was significantly higher than the settlement amount. Before the lawsuit began, the company stated that California, Colorado, Kentucky, and New Jersey were seeking fines of up to $1.4 trillion. The states also demanded changes to how the platforms operate and restrictions on children’s ability to create accounts.
The settlement was reached following several rulings unfavorable to Meta. In March, a New Mexico court ordered the company to pay $375 million, and in August, in the same case, a judge awarded an additional $567 million and demanded that measures to protect young people be strengthened.
However, Meta’s legal risks have not completely disappeared. Thousands of lawsuits against major social media platforms, including Meta, Google, Snap, and TikTok, remain pending in the U.S. Plaintiffs are seeking compensation, arguing that the design of these services fosters addiction and harms children’s mental health.
Investors reacted positively to the settlement: Meta’s stock rose 4.4% in pre-market trading.
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