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Meta Settles Teen Addiction Case for Up to $18B

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Meta has agreed to pay billions and restrict how teenagers use Facebook and Instagram, settling claims that the platforms were designed to encourage addictive use.

The settlement could be worth approximately $18 billion and ends a federal trial brought by a bipartisan coalition of US attorneys general.

The agreements cover 47 states, Washington, D.C., Puerto Rico, American Samoa and the Northern Mariana Islands, including a separate agreement with Texas.

Meta says its total payment could reach approximately $18 billion. About $12.7 billion will be distributed over 10 years, while the remaining $5.3 billion is contingent on TikTok and YouTube adopting comparable protections and making matching payments.

The settlement was submitted to US District Judge Yvonne Gonzalez Rogers and remains subject to court approval. The deal resolves allegations that Meta deliberately designed its platforms to encourage addictive use among young people, misled consumers about safety and collected data from children without proper parental consent.

Meta denies wrongdoing.

What changes for teen users

Under the agreement, users under 18 will face a default two-hour daily limit across Facebook and Instagram, which they can turn off only with a parent’s permission. The restrictions are expected to take effect within six months if the settlement receives court approval. Meta will also block most teen access from midnight to 6 a.m. and mute push notifications from 8 a.m. to 3 p.m. during school hours, except for direct messages and account security or safety alerts.

Other changes include hidden like counts, blocks on cosmetic surgery and extreme makeup filters, options to disable autoplay and use a non-personalized feed, and prompts after 15 minutes of continuous use and at 60 and 90 minutes of daily use.

Meta also agreed to strengthen age-assurance technology, restrict age-inappropriate content and improve parental controls.

If TikTok and YouTube adopt comparable protections, Meta would reduce its daily limit to one hour per app and extend the overnight block to 10 p.m. through 7 a.m.

A costly deal with wider consequences

The settlement does not require Meta to abandon personalized recommendations or targeted advertising, Reuters reported. That leaves a central part of its engagement-driven business model intact.

Still, the financial and product changes could influence thousands of other lawsuits against Meta, TikTok, YouTube and Snap. Reuters reported that governments and private plaintiffs are pursuing claims alleging social media companies contributed to a youth mental health crisis.

The agreement could therefore become more than a costly settlement for Meta: it may establish a practical template for regulating how major social platforms design products for teenagers.

An independent auditor will review Meta’s compliance and the effectiveness of its safeguards, while a research foundation will use data from consenting users to study teen well-being. For technology companies, the settlement shows that youth safety is becoming a product-design and compliance requirement affecting age-assurance systems, recommendation features, notifications and parental controls — not simply a matter of updating privacy policies.

Read more: A recent New Mexico ruling ordered Meta to pay $567 million and overhaul teen protections on Facebook and Instagram, showing how courts are increasingly treating youth safety as a product-design and compliance issue.

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Rivian’s CFO is leaving the company

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Rivian’s chief financial officer Claire McDonough is resigning her position at the end of October, the company announced in a regulatory filing Thursday.

The company said McDonough is stepping down to “pursue a new opportunity and relocate to the East Coast to be closer to her family.” Rivian said her resignation is “not the result of any disagreement.” The company is already searching for a replacement, and vice president of finance Derek Mulvey will serve as interim CFO once McDonough leaves her post.

Her departure comes as Rivian takes on some of its biggest projects to date, including scaling up production and sales of its R2 SUV, which started shipping to customers this summer.

This story is developing…

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Bluesky adds an ‘algorithmic opt-out’ feature for those who don’t want to go viral

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After adding support for longer videos just yesterday, open social network Bluesky on Thursday introduced a new algorithmic opt-out feature that allows users to stop their posts from appearing in the app’s main Discover feed.

That algorithmic feed can currently surface any post on Bluesky’s network, as posts on the network are public by default.

To be clear, this latest change isn’t a way to make posts private — Bluesky is still working on rolling out support for private data at the protocol level. Instead, the feature simply makes a user’s public posts less discoverable to people outside their existing personal network.

The company says it created the feature because not everyone using its social media site wants to go viral. Sometimes, people just want to post for their followers without having their words exposed to larger crowds.

To opt out of having posts shown in the Discover feed, users can toggle on a new option in the app’s Privacy and Security settings. The change can take up to an hour to fully take effect, the company says.

Image Credits:Bluesky

It’s also worth noting that Bluesky’s implementation of the feature extends beyond its own app.

Instead of just being a setting that applies only within Bluesky, the preference is recorded at the account level. That means the choice travels with the user, even if they’re posting from another app that is powered by the same underlying protocol that Bluesky uses, AT Proto.

However, while those other apps have access to this information, they still have to choose to whether to respect it.

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Buried in Meta’s $18B settlement is a legal pass on kids’ data

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In addition to paying out up to $18 billion and adding child safety measures, Meta’s settlement agreement with attorneys general from 29 states includes an interesting provision: the states have agreed not to sue Meta under existing child safety laws over its retention and use of children’s data.

That permission is being granted for the limited purpose of training and testing Meta’s age-assurance model and includes guardrails, but it’s a curious policy decision to make in a case centered on child safety, and one that could be difficult to properly enforce.

As specified in the settlement agreement, Meta must develop, train, and begin testing a model designed to detect which users on Meta’s platforms are under the age of 13. This must be done within a year of the document’s effective date. (While the agreement doesn’t specify that the model has to be AI-based, Meta’s current age-detection tools are powered by AI technology.)

Under U.S. child safety law, COPPA (the Children’s Online Privacy Protection Act), typically requires that websites and apps limit the collection and retention of children’s personal information. Meta’s settlement agreement says that Meta shouldn’t need to violate COPPA to train or implement its age-assurance models. However, the agreement also says that the state AGs have agreed “fully, finally, and forever” not to bring any past, present or future COPPA claims — or claims under similar state laws — related to Meta’s use of children’s data.

The agreement makes clear that Meta can’t use data from users under age 13 for ad targeting, marketing, or algorithmic optimization.

Meta’s request for legal protection, and the state AGs’ willingness to grant it, isn’t unreasonable, says Philip N. Yannella, a partner at law firm Blank Rome and co-chair of its Privacy, Security & Data Protection practice. “These kinds of data minimization guardrails are pretty typical for privacy compliance: e.g., verifying compliance with deletion requests,” he said, though he noted a caveat: COPPA is a federal law primarily enforced by the FTC, not the states, so it’s unclear whether the FTC, which isn’t a party to this settlement, has separately agreed to the same compromise.

It can be difficult for companies to keep data technically and organizationally isolated from the rest of their systems. Yet Meta is being asked to do just that — to isolate its understanding of children’s behavior signals and other data and use it solely for detecting and removing under-13 users. Fortunately, an independent auditor will be involved in monitoring Meta’s compliance with the settlement so we don’t only have to rely on Meta’s word.

Policing this limitation could be complicated. The data could hypothetically feed into other Meta systems over time, or could raise questions over whether the data, signals, or insights derived from it are being used elsewhere within the company. What’s not clear from the agreement is what data Meta will retain for training the model, how much behavioral information that may include, or how long it will retain the data. We also don’t know how these models will change in the future as Meta meets the settlement’s terms.

Barring state AGs from raising COPPA or similar state-law claims over this use of children’s data in the future could complicate the legal avenues states can pursue if questions arise around how Meta is using the data.

That doesn’t prevent them from pursuing legal claims, notes Joshua Wurtzel, a partner at Schlam Stone & Dolan LLP. “If Meta uses the data outside those lines, the release and covenant not to sue don’t apply,” he said. But those legal disputes could still be complicated, since they’d hinge on whether Meta’s use of the data fell within the settlement’s terms.

Peter Jackson, a Data & IP attorney at Greenberg Glusker LLP, agrees, saying the carve-out here could “disincentivize future enforcement actions.”

“The Settlement Agreement’s age-assurance measures bear all the hallmarks of a heavy, and perhaps hasty, negotiation,” he says.

The decision also touches on a broader question that’s been coming up across the AI industry lately, especially as more AI agents are being developed to help consumers with various tasks. The systems often require significant access to users’ personal data to work well. Similarly, Meta may need deep insight into children’s use of social media use in order to identify which accounts belong to young people.

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