Arkansas set to receive portion of $17 billion Meta settlement
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Arkansas expects to receive about $172.5 million from Meta in a $17 billion multi-state settlement after states accused the parent company of Facebook and Instagram of harming children, Arkansas Attorney General Tim Griffin announced.
Why it matters: This is social media's version of the landmark 1990s tobacco settlement, one that effectively reshapes the industry and how young Americans experience some of their favorite platforms, Axios' Nathan Bomey writes.
Driving the news: Meta agreed to provide compensation to the states for a variety of public health purposes, including crisis intervention services, after-school programs, outdoor activities and youth mental health programming.
- Meta also agreed to limit under-18 users to 2 hours per day on Facebook and Instagram, block them from accessing the platforms from midnight to 6am, and limit notifications to them during school hours.
- Youth will also be given the option to have a chronological feed rather than an algorithmic one — and parents can make it the default.
- Kids also won't be able to see likes and other reactions on posts.
Flashback: Arkansas officials filed lawsuits in 2023 against Meta and TikTok under the state's Deceptive Trade Practices Act. One of the lawsuits accused Meta of targeting youth with algorithms "deliberately engineered to exploit the fragility of young users' brains" to maximize engagement and release "continuous dopamine hits."
What they're saying: "For years, Meta represented that its platforms posed no risk to the mental health of young people, all while knowing that its algorithms were designed to get kids hooked and to keep them online for as long as possible, with well-documented adverse mental health consequences," Griffin said in a news release.
What's next: The settlement agreement still needs to be approved by the court, but the money Arkansas receives will be spent in accordance with the agreement, including on mental health and keeping kids safe, Griffin's spokesperson, Jeff LeMaster, told Axios in an email.