Meta has reached a landmark settlement with 29 US states to resolve the lawsuit over the harms caused by its social media platforms to young users. The agreement includes a payment of up to $16.7 billion and substantial changes to Instagram and Facebook. The announcement came on Wednesday, just before Instagram head Adam Mosseri was set to return to the witness stand. The news sent shockwaves through the tech world, as Meta had consistently chosen to go to trial, unlike other platforms like YouTube, Snapchat, and TikTok that had already settled out of court.
The record sum, which could become the largest ever paid for such a case, is only part of the deal. Meta has agreed to introduce time limits and safety features specifically designed for teenagers. These changes, which require judicial approval, represent a radical shift in how social media is used by younger audiences. The stated goal is to create a safer and less manipulative environment, as explained by the attorneys general involved.
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New Rules for Teens on Instagram and Facebook
The agreed changes mainly concern time management and notifications. For users under 18, Instagram and Facebook will have a default two-hour daily limit, which can only be disabled with parental approval. Additionally, the apps will be blocked between midnight and 6 a.m., and notifications will be muted between 8 a.m. and 3 p.m. from August 15 to June 15 to minimize distractions during school hours. Teens will also receive prompts every 15 minutes of continuous screen time and additional alerts when they hit 60 and 90 minutes of usage.
Parents will have greater control over their children's experience. They can choose to set a chronological feed instead of an algorithmic one and disable autoplay by default. Meta will no longer display the number of likes and reactions on teen posts by default, and will disable cosmetic surgery and extreme makeup filters. These measures have been described as a 'ban' for teens rather than a simple default, with parental approval required for any changes to the default settings.
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A Deal with a Conditional Clause Involving Snap, TikTok, and YouTube
The $16.7 billion payout is not entirely guaranteed. About $12.7 billion will be paid in ten annual installments, while the remainder is contingent on other 'core industry members' implementing similar safeguards. Meta has defined Snap, TikTok, and YouTube as core industry members and stated that they must introduce a one-hour daily limit, a comparable night mode, and age assurance measures. Furthermore, TikTok and YouTube must make a combined payment comparable to the outstanding amount from Meta. This clause is seen as an attempt to create a uniform level of safety across the industry.
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Privacy Violations Allegations and Legal Consequences
All 29 states argued that Meta violated federal child privacy laws by collecting data on users under 13. Four of these states, California, Colorado, Kentucky, and New Jersey, also alleged that Meta deceived parents with misleading statements about protections for adolescent users and engaged in unconscionable practices in designing certain features. Meta denied all accusations but accepted the settlement to avoid further trials that could have resulted in damages exceeding $1 trillion, as estimated by the company itself.
The trial, which began last week, had already featured testimony from former employees and an academic psychologist describing a corporate culture focused on engagement at the expense of youth well-being. In particular, it emerged that the 'Take A Break' feature, designed to remind teens to take pauses, had been activated by less than 1% of weekly teen users, and after two years, adoption was only 1.8%. 'Quiet Mode' also had poor uptake.
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This settlement marks a turning point not only for Meta but for the entire social media industry. As reported by Wired, the company has also agreed to appoint an independent auditor who can report concerns to the attorneys general and to develop more robust parental supervision tools. Additionally, Meta is prohibited from making false, misleading, or deceptive statements about its safety features. The decision to cooperate with states could influence other platforms, as highlighted by the request for YouTube and TikTok to adopt similar changes. For more context on AI-related fraud, you can read this article.
