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USA: Meta agrees to pay out billions of dollars and alter key features of its social media

USA: Meta agrees to pay out billions of dollars and alter key features of its social media

A week after a landmark trial began in California (see), in a surprise move Meta has agreed to sweeping changes to Facebook and Instagram and payments of up to $17 billion to settle the lawsuit brought by California and 28 other US states. The states alleged that Meta deliberately designed addictive products that harmed young people’s mental health and collected data from children under thirteen without parental permission. Meta still denies wrongdoing. Under the settlement, teenage users will receive safeguards including daily usage limits, restrictions on nighttime access, fewer notifications during school hours and bans on plastic surgery filters. The payments will be distributed among participating states over ten years, subject to court approval. The result of the agreement, ending a federal jury trial after just four days, is that for the first time Meta will have to alter key features affecting ordinary American users. Meta has urged TikTok, Snap and YouTube to adopt similar protections, arguing that effective safeguards require action across the social media industry. There potentially could be dozens of other similar lawsuits, especially because the agreement only applies to the USA.