Unexpected Settlement Amidst Ongoing Legal Proceedings
Before the conclusion of the anticipated 19-day federal trial regarding the alleged failure to protect young users, Meta has reached an out-of-court settlement. The company has agreed to pay up to $16.7 billion to 51 states and territories across the United States, alongside implementing significant changes to its products and the way teenagers engage with its platforms.
The agreement was announced this week by attorneys general representing several of the 29 states that had taken Meta to court, just prior to Instagram’s head, Adam Mosseri, returning to the witness stand. In a separate statement detailing the settlement, Meta urged competing platforms like YouTube and TikTok to adopt similar changes to enhance user safety.
Meta’s Shift from Litigation to Settlement
This development marks a notable change in Meta’s legal strategy. While other social media platforms, including YouTube, Snapchat, and TikTok, have opted for out-of-court resolutions in similar lawsuits, Meta has consistently chosen to fight its cases in court. Earlier this year, the company faced significant setbacks in state-level lawsuits in California and New Mexico, resulting in nearly $1 billion in penalties. The federal trial concerning issues related to minors commenced last week and presented a precarious situation for the company, with potential liabilities estimated at over $1 trillion.
In a statement, Meta emphasised its commitment to ensuring that teenagers have a safe and constructive experience on its platforms, declaring, “It is imperative for Meta to do the right thing for parents and teens, which is why we have partnered with state attorneys general to set a new industry standard.”
Key Changes to User Experience for Adolescents
As part of the settlement, significant modifications will be introduced to Instagram and Facebook, focusing on both functionality and time limits. Pending judicial approval, teenagers using these platforms will automatically have a two-hour daily limit, which can only be overridden with parental consent. Additionally, access to the apps will be restricted by default from midnight to 6 a.m., and notifications will be muted during school hours, specifically from 8 a.m. to 3 p.m., from mid-August to mid-June, to reduce distractions. Users will also receive reminders every 15 minutes of continuous screen time, along with notifications when they reach 60 and 90 minutes of usage.
Enhanced Parental Controls and User Safety Features
Parents will now have increased control over how their teenagers interact with Instagram and Facebook. They will be able to set the default feed to chronological order instead of algorithm-based, and turn off autoplay by default. Furthermore, Meta will not display the number of ‘likes’ and reactions on posts by teenage users as a default setting. Attorney General Rob Bonta referred to these measures as a “ban” for adolescents instead of merely a default configuration. The company will also disable “extreme cosmetic surgery and makeup filters” for younger users.
Legal Challenges and Allegations Against Meta
The 29 states involved in the lawsuit claimed that Meta violated federal child privacy laws by collecting data from users under the age of 13. Four states—California, Colorado, Kentucky, and New Jersey—accused Meta of misleading parents regarding protections for teenage users and engaging in abusive practices by designing certain features of Facebook and Instagram with prioritisation of engagement over user safety. Meta has denied all allegations.
The states began their case by calling upon current and former Meta employees to testify about an alleged culture prioritising user engagement at the expense of young users’ well-being. An academic psychologist testified that teenagers, particularly girls, who spent excessive hours on social media were more likely to experience depression and unhappiness, contributing to a rise in loneliness and self-harm over the last 15 years.
Focus on Instagram’s User Well-being Initiatives
This week, the coalition of attorneys general shifted its focus to Instagram’s well-being team, which has been working since 2018 to develop features addressing concerns regarding teenagers’ social media usage. Testimonies from a former data scientist, the current product design director, and the veteran executive Mosseri revealed the states’ efforts to persuade Judge Yvonne González Rogers and the eight jurors advising her that Meta was engaged in unfair and deceptive business practices.
Significantly, attention was drawn to a feature called “Take A Break,” which prompts teenage users to limit their prolonged usage of Instagram. According to testimonies, less than 1% of weekly teenage users had activated this feature months after its launch. Two years later, adoption rates remained low at only 1.8%. A similar feature, known as “Quiet Mode,” saw marginally better uptake, as revealed in documents presented during the trial.
Future Compliance Measures and Ongoing Developments
As part of the settlement, Meta also agreed to compliance measures, including the appointment of an independent auditor to voice any concerns to the attorneys general, as well as the development and implementation of more robust parental oversight tools. The company will also be prohibited from making further false, misleading, or deceptive statements regarding its safety features.
This story is still developing.