Meta agrees to $18 billion settlement and teen usage limits in child safety case

Meta will pay up to $18 billion and implement daily usage limits for teenagers on Facebook and Instagram, settling claims that the company designed its platforms to foster addiction in children. The agreement concluded a federal trial mid-process, as reported by Security Affairs.

The settlement, which spans a decade, includes a cap of two hours per day for teen users on Facebook and Instagram. Meta will also enforce a lockout from midnight to 6 a.m. unless parental consent is given and disable most push notifications during school hours. While the company avoids having to cease personalized recommendations or targeted advertising for minors, the deal resolves state privacy claims related to the Cambridge Analytica scandal with an additional $459 million payment.

The settlement's structure includes a portion of the payout contingent on competitors like Snapchat, TikTok, and YouTube adopting similar teen protections, creating a financial incentive for Meta to advocate for these changes across the industry. However, some states, like New Mexico and Florida, did not join the settlement, citing insufficient protections or inadequate financial compensation, and plan to pursue further legal action.

Source: Security Affairs