New Delhi, August 26 (IANS). Social media giant Meta Platforms has agreed to settle a major case filed by several US states alleging that Facebook and Instagram were addictive to children and teenagers, misled users about the safety of the platforms and improperly collected personal data of minors. According to court documents, Meta will pay up to $16.68 billion under the agreement.
The settlement came amid an ongoing lawsuit in a federal court in California, in which 29 US states had made claims against Meta. The settlement brings to an end one of the most high-profile legal cases involving the effects of social media on children and teens.
Under the agreement, Meta will implement a number of new safeguards for teens using Facebook and Instagram in the US, including setting limits on daily usage time and restricting access to the platforms at night.
However, Meta has refused to accept any fault or legal responsibility despite the settlement.
After the news of the agreement came out, there was a positive reaction from investors and Meta shares rose by about 4.4 percent in pre-market trading.
The case alleged that Meta violated the consumer protection laws of California, Colorado, Kentucky, and New Jersey. The states also claimed that the company violated the Children's Online Privacy Protection Act by collecting personal information from users it knew were children, without adequately notifying or obtaining parental consent.
The lawsuit also included allegations that the company used children's data to train machine learning and generative AI models.
Meta denied the allegations throughout the case and said it had taken extensive steps to protect young users on its platforms. The company also argued that it could not mislead consumers by describing its platforms as “addictive”, as “social media addiction” is not formally recognized as a psychiatric condition.
Before the case went to trial, Meta said some states were seeking penalties of up to $1.4 trillion, although states later indicated the actual amount may be closer to $200 billion.
Additionally, state governments also wanted additional compensation and judicial orders that would have required Meta to make major changes to its platforms and possibly make it harder for children to create accounts.
This agreement comes at a time when the debate is intensifying around the world about the impact of social media on the mental health of children and adolescents.
Apart from Meta, Snap, Alphabet (parent company of YouTube) and ByteDance (parent company of TikTok) are also facing thousands of lawsuits. These cases allege that these platforms were intentionally designed with features that encourage children and teens to engage in prolonged screen time and excessive use.
–IANS
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