Meta was being accused by 30 US states of failing to protect minors by making social media addictive, as well as misleading consumers about its safety and collecting personal data without their consent.

The settlement has not yet been approved by the court, but Meta will pay compensation to 29 states over 10 years to fund various public health initiatives and activities aimed at improving young people’s mental health. In addition, the company will also implement various measures focused on younger users.

Proposed changes

The proposed changes include a limit of two hours’ daily use of Facebook and Instagram for those under 18. A complete block will also be in place from midnight until 6 am. Notifications will also be restricted during school hours, and under-18s will no longer be able to see the number of likes and other reactions to their posts.

Another change is the option for younger users to view their feed in chronological order. This measure is intended to bypass the algorithm, presenting users with more diverse content that is not so heavily focused on a single topic.

Settlement reached

The settlement is reported to have been reached in a federal court in California and will avert a high-profile lawsuit concerning the impact of social media on younger users. The allegations include a wide range of cases brought by US states, local authorities, school districts and private individuals, who have accused Meta and other social media companies of contributing to a deterioration in the mental health of young people in the United States of America.

Allegations against Meta

Among the allegations, Meta was accused of breaching the Federal Children’s Online Privacy Protection Act because, according to the complaint, it collected personal data from users whom the company knew were under the age of majority. Furthermore, Meta failed to notify parents or seek their consent to use young people's data, which was used to train machine learning and generative artificial intelligence models.

The attorneys general of California, Colorado, Kentucky and New Jersey also alleged that Meta had breached state consumer protection laws.

The Financial Times further reveals that the settlement does not imply an admission of guilt on Meta’s part. The same source also reports that $5.3 billion of the agreed sum will be accepted only if YouTube and TikTok also agree to pay a similar amount and apply restrictions equivalent to those imposed on Meta. The company is reported to have justified this decision as a way of reaching a unanimous solution across the entire social media industry.