Market Flux Event
Meta Settles With 29 US States Over Allegations That Facebook and Instagram Harmed Children
Meta Platforms reached a settlement with a coalition of 29 US state attorneys general to resolve claims that the company deliberately designed Facebook and Instagram to addict children and teenagers, misled consumers about platform safety, and improperly collected personal data from children under 13 without parental consent. The settlement was confirmed in court filings on August 26. The case had been in active trial, in its second week in federal court in Oakland, California, when the deal was reached, a moment that heightened the stakes considerably as states were seeking both massive financial penalties and mandatory changes to how Meta's platforms operate.
The allegations centered on Meta knowingly engineering addictive features that contributed to a youth mental-health crisis and violated child-privacy laws. Terms of the settlement, including any financial penalties or required operational changes to how the platforms engage with young users and collect their data, were not immediately disclosed in the filings.
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Sources
- DeItaone$META - STATES, META AGREE TO SETTLE CLAIMS THAT PLATFORMS HARMED CHILDREN -- COURT FILING
- FirstSquawkSTATES AND META HAVE REACHED A SETTLEMENT REGARDING ALLEGATIONS THAT THEIR PLATFORMS HARMED CHILDREN, ACCORDING TO A COURT FILING.
- ReutersMeta settles with US states over social media harms
- ReutersLegalBREAKING: Meta settles with US states over social media harms
- Yahoo FinanceMeta settles multistate teen social media lawsuit for $16.7 billion
- BusinessBreaking: Meta has reached a settlement with multiple US states to end a trial over teens' addiction to Facebook and Instagram.
- YahooFinanceMeta has agreed to settle the lawsuit that accused Facebook and Instagram of being addictive to children.