Wednesday’s surprise settlement by the parent of Facebook and Instagram to a lawsuit filed by multiple states about failure to protect young users not only involves a lot of money, including up to $220 million for New Hampshire and $97 million for Vermont over the next decade, but more surprisingly sets the stage for changes in how social media operates.
New Hampshire Attorney General John Formella said Wednesday that New Hampshire plans to use most of the money for youth mental-health programs, but that it’s too early to give specifics. The settlement still must be approved by a judge.
Formella also noted that questions over teens and online platforms aren’t over.
“The technology is going to continue to evolve, and these platforms are going to continue to change. But the principle that is going to hold firm throughout our efforts is that companies who design products that are intended for kids have an obligation to make those products safe. They have an obligation not to addict kids to harmful products,” he said in a Wednesday press conference. “It’s a significant achievement, but we have a lot more work to do.”
Under the agreement announced Wednesday, Meta said it would put limitations for teens on Instagram and Facebook — limits that parents can override.
If approved by a judge, the agreement includes a default two-hour time limit for all usage and the blocking of the apps between midnight and 6 a.m., as well as muting of notifications between 8 a.m. and 3 p.m. during the school year. Teens would also get prompts every 15 minutes of continuous screen time and additional notifications when they hit 60 minutes of use.
There are issues, including the fact that Meta must determine who is a teenager and who is a parent, which could further erode users’ ability to be anonymous online. And the limits are not absolute: For example, audio or video at least 22 minutes long would be exempt, as is messaging through apps, meaning teens can still DM for as long as they please.
However, this is the first large-scale step back from the corporate practice of doing everything possible to keep people using social media for as long as possible. And it includes an unexpected prod to get other sites to impose similar limits.
The settlement came in the first week of a federal lawsuit filed in California by 29 states.
It includes payouts of up to $16.7 billion over a decade to every state. New Hampshire and Vermont will share even though they were not among the states in the federal suit. Like several other states, they chose to file a similar lawsuit in state courts.
New Hampshire’s suit argued that Meta used “addictive” algorithms that “exploit the developmental vulnerabilities of children and trap them into never-ending use.”
“I think it’s time for us to take action federally. New Hampshire is also going to look at legally what action we can take in terms of our laws to protect children from online tech platforms, in terms of what’s being served to them and what age they have access to these platforms,” Gov. Kelly Ayotte said during Wednesday’s press conference.
Under the proposal, New Hampshire would get an initial $15.4 million, with up to $220 million over the next decade. Vermont would get an initial $8.9 million and eventually as much as $127 million.
In the federal trial, Meta apparently saw the writing on the wall after losing two state trials concerning harm to minors, costing it $1 billion in fines. Some predicted that losing this federal lawsuit could cost the company $1,000 billion.
The proposed $16.7 billion payout has an unexpected twist. Around $12.7 billion is guaranteed and will be paid out over 10 years in annual installments, but the remainder is contingent on Snapchat, TikTok and YouTube implementing similar safeguards.
