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Meta reaches $17B settlement over social media harms to children

reuters.com · Read Story HN original

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“Shares of Meta rose 4.4% in pre-market trading.”
A measure of the market's perception of the threat to Meta from these lawsuits. The uncertainty is over now, so the price goes back up.

I'm interested in the settlement details - yes $16bn ok fine but any behavioral or structural changes? If it's just financial, nothing really changes... (EDIT: I see julianpye found some details in the WSJ, in another comment. There are some feature adjustments.)

> the settlement details

“Meta will initially pay about $12 billion. That sum increases to $17.1 billion if Snap, TikTok and YouTube also settle with the states and agree to financial penalties and product changes.

The settlement will effectively force Meta to make major product changes for all U.S. users. The company agreed to interrupt endless scrolling and to impose two-hour daily time limits on Instagram and Facebook. To avoid addictive use and sleep interruptions, the company will limit usage between midnight and 6 a.m. and silence notifications between 10 p.m. and 7 a.m.

Meta will also limit features that psychologists link to negative social comparisons, such as beauty filters and a tallying of the ‘like’ button clicks. It will also strengthen age verification tools and parental controls” [1].

[1] https://www.nytimes.com/2026/08/26/technology/meta-settlemen...

Short-lived. Down to flat now.
The WSJ reports: "As part of the settlement agreement, Meta will also make sweeping changes to its services, Facebook and Instagram, including implementing a default two-hour time limit on its apps for users under 18."

The question is of course if these limits are enforced and if they are shared across other services.

Two hours is one hour too long if you ask me.

This should be implemented also for adults.

And non-avoidable.

Two hours is two hours too long.
Adults can’t decide for themselves?
Adults should not be allowed to use heroin either.
There isn't some magical switch that's flipped on your 18th birthday where you suddenly be pragmatic and make rational decisions. Even into your 20s, your brain is still developing. My mother is in her 60s and addicted to facebook and tiktok. It takes significant willpower to overcome addictions for most people. The brain of an 18 year old addicted to social media is mashing the "do the feel good thing" button just the same as a 17 year old.
Seing how many adults have gambling addiction, drug addiction, alcohol addiction, food addiction, and social media addiction, I will say, not so much?
Adults want time limit they can set in the app themselves.
This is already a feature in instagram. Then it's also a feature built in the OS in phones.

What more are you looking for?

Why do you support a nanny state that tells adults what content they are allowed to consume?
I'd prefer facebook to not give away free drugs to the drug addicts.

Social media is one of the most insidious addictions, it doesn't cost money and your physical health is largely unimpacted. The real impact is on society and the family. My Facebook addict mother could be talking to friends, reading a book, or doing anything mentally/physically/socially productive other than scrolling for hours looking at junk content and AI slop.

A parent of young children could be interacting with their kids and building lasting connections instead of scrolling through tiktok to watch the mommy bloggers interacting with their kids. Or alternatively, setting unrealistic expectations of what a good parent does for their children and basically saying anyone not doing the same is a bad parent. My parents loved me and gave me a great childhood but my working mom wasn't up at 4am making trad wife breakfasts and lunches in the kitchen. My wife likes watching that stuff. I always point out how fancy of a kitchen the trad wife has and that she can afford to spend hours a day baking and cooking because she is wealthy, doesn't need to work a 9-5, and likely has a nanny to take care of the kids while she's filming and editing daily content. These aren't baking recipes being shared, this is content implying that to be a good mother you need to only shop at Whole Foods and bust your ass in the kitchen for hours on end.

A young adult is consuming vast amounts of unrealistic body imagery (whether it's "fitness" influencers or porn) and harming themselves to achieve the same. Sure, a fat and ugly person doesn't attract the same views as fit and pretty person but it turns a dark corner when the algorithm starts pushing ED content.

Grandpa is addicted to false or misleading political feeds to the point where he's near militant in his support for someone that's more interested in leveraging identity politics for power and money than actually helping improving the life of someone like grandpa. I'm still convinced that the vast amount of radical/alarmist traditional and social media my grandfather was fed manifested into depression and contributed to his suicide.

I don't think there needs to be strong limits on the content itself. Maybe some restriction on outright lies if it's not presented as entertainment or fiction. But what needs to happen is some sort of rollback on how good these feed algorithms are. It's not really healthy and no one except the social media companies are truly benefiting at the end of the day.

The state already tells adults what content they can consume. Truth in advertising laws, pornography restrictions, MPAA ratings and age restrictions, pirated media, and so on. Even with a default of freedom of speech, the state has numerous subsidy/financial-penalty mechanisms by which it can and does restrict what content is practically available for consumption.
You think the state should restrict what adults do on their phones?
The state already restricts what adults do on their phones. You can't buy drugs or look at CSAM. You can't use your phone while driving or operating dangerous machinery. You can't install apps which facilitate piracy. You can't wipe your phone when the state lawfully requests it from you. The list goes on.
Are you saying that because laws exist, and it’s illegal to break the law while using your phone, that is therefore justification for making it illegal to scroll on social media for longer than an hour each day?
I didn't make that argument. I responded to the statement:

> You think the state should restrict what adults do on their phones?

The state already does that.

>You can't install apps which facilitate piracy.

Initially read this as "can't install apps which facilitate privacy."

And that was before I got to your next sentence . . .

No, but I sure as shit think it should be an opt-in feature that adults are aware of and can make a decision to turn on for themselves.
Only if we make sure it applies to your HN social media time. After all, we wouldn’t want you to get too used to your own freedom and autonomy. We must remind you that random people like me must consent to you doing what you want with a social media platform!
They already must consent. By using HN you're subject to the terms of ICANN and Verisign.
Probably default setting that can be changed by the under aged user. And probably per app or even per account.
So nice of them to let kids lose their minds 2 hours at the time.
It’s gonna be like micro dosing drugs. Like what kind of a lawmaker would think that’s okay
Would've been cool if they had actual improvements like the timeline only shows people posts from their friends
and in reverse chronological order, so you can actually pick up where you remember leaving off previously. what a novel idea.
So nice of them to let kids lose their minds 2 hours per FB and 2 hours per IG each day.
1% of their market cap. I don't think we'll see someone with a net worth of $100,000 paying only a $1000 fine for harming children.
If the handling of the Epstein files in the US is anything to go by, they’d get away scot free.
Market cap is generally the wrong measure. If you registered asf1254 Inc., and it was always just you, and it traded like Meta stocks trade, then "asf1254 Inc." would have a market cap ~6.2× whatever you're currently earning.

i.e., if you earn $100k/year, you'd be "worth" $620k, and 1% of that would be a fine of $6200.

You may earn 100k/y and have 10M real estate + 2M in bank. Why would you dumb down market cap to earnings?

Anyway, 6K for harming children at that scale remains ridiculous.

> Why would you dumb down market cap to earnings?

The point is "Market cap is BS".

> Anyway, 6K for harming children at that scale remains ridiculous.

One person managing to harm children at this scale would likely get a penalty much smaller than $16 bn.

Of course even "20-life" is a penalty much smaller than $16 bn, given the average American's lifetime earnings are around the $3m level, i.e. it would take 5000 mean lifetimes to repay the actual fine in the headline.

It's nonsensical to scale down a %-of-wealth fee to one person without also considering that the offence would likely be smaller, and also as an independent consideration how difficult it would be for one person to commit the acts.

Sure, sure. Put Zuck in jail and let's see if it's much smaller than $16 bn.
Would if I could, but I think you're missing my point somewhat.
Market cap isn't real money
it's funny how it's real money when it's useful and fake money when it's not
well that is Schrödinger's finance for you, they decide whether to say its fake or real based on their own benefit.
The sibling comment, talking about Schrödinger, is correct for the wrong reason.

The share price is essentially always fake, because the ticker price of any given symbol is in a superposition of all possible values until it gets traded. The bigger the trade you try to make, the bigger the shift you directly cause to the value while you're attempting to make the trade.

Money isn't real, yet that's how we size a lot of things.
Then they may as well pay out 10% of the stock.
What % of META (shares) are owned by Meta Platforms Inc.?

Don't get me wrong, I'm happy for e.g. Zuckerberg personally to be ordered to hand over all his shares as any given penalty, but as stated what you describe sounds like a way to avoid paying a penalty.

Meta Platforms Inc. can create shares out of thin air.

Diluting existing shareholders by 10% would send a much stronger message than whatever's happening now.

The message being "screw the rules, I have money".

The shareholders already can't remove Zuckerberg, he has 57% of voting control.

It amounts to taking 10% of his wealth too, through dilution.

And by diluting all shareholders it depresses the price in the future.

That's like a court ordering 10% of your home be put on the market in a way that never forces you to pay rent, when you're likely to live in it for the rest of your life.

The wealth you're talking about is almost entirely bound in owning and controlling facebook, bounces up and down a lot regardless of penalties, and it isn't a liquid asset becase he can't sell without giving up that control…

Except worse than that, because he could probably order the business to print more shares and give them to him do at any time because of his voting control. See e.g. Musk and his BS trillion dollar performance carrot at Tesla where the board is suspiciously arranged in his benefit, or Musk and his BS voting control structure with SpaceX. IIRC Meta's dividends are pathetic and Musk's nonexistent, so you're proposing an even smaller slap on the wrist than the penalty you deride.

> it isn't a liquid asset becase he can't sell without giving up that control…

And that doesn't matter. If Meta is forced to issue 10% more shares to the plaintiff the value of all shareholders' shares fall 10%. And if the plaintiff dumps all the shares on a single day, they fall even harder.

Zuckerberg's 57% control of a $1.6t company means a lot more than my 50% control of Triceratops Inc. Not because 57% > 50% but because $1.6t > undefined.

> he could probably order the business to print more shares and give them to him do at any time because of his voting control

Unlikely. Meta is still headquartered in Delaware and such an action would be subject to shareholder lawsuits. And again the stock price falls, so does Zuckerberg's net worth and also the RSU grants of all his employees. To retain them Meta has to spend more money - cash or further share dilution.

You either don't understand finance or are being deliberately obtuse.

> And that doesn't matter. If Meta is forced to issue 10% more shares to the plaintiff the value of all shareholders' shares fall 10%. And if the plaintiff dumps all the shares on a single day, they fall even harder.

And why should Zuckerberg care? You can observe by looking at what he's doing that the only thing he wants to own with 99% of his wealth is Meta itself. If Meta stocks were to literally and permanently devalue by 99%, he's still a multi-billionaire and keeps his various mansions and so on, modulo whatever loans he has.

> Meta is still headquartered in Delaware and such an action would be subject to shareholder lawsuits.

So was Tesla until it wasn't: https://eu.delawareonline.com/story/money/business/2024/06/1...

> To retain them Meta has to spend more money - cash or further share dilution.

The recent fire-rehire scheme, the one where the firing was blamed on AI even though he got many of them back again, appears to be in aid of breaking the requirement to give out all those stock options.

That's equivalent to saying they should give 10% ownership to the government.

First, that would be communism, and second, what would the government be able to use that for?

> that would be communism

That would be news to all of these: https://en.wikipedia.org/wiki/Sovereign_wealth_fund

> what would the government be able to use that for?

Even if the government didn't have such a fund, it could sell all the shares at once. Or slowly over time.

You are absolutely right, they would commit fraud on an unprecedented level and get away with hundreds of millions!
Only to children? What about adults? Yes, I know we are supposed to be more responsible, but this things are made to be addicted and you don't realize until it is too late.
Pay 25% from your 2025 profit for harming children since at least 2019 and be able to continue doing so. Sounds like a loss for society and a win for Meta.
The article outlines several changes Meta is having to implement that curbs the "and be able to continue doing so" argument a bit. That said, I wish these settlements included tobacco-esque requirements for ongoing funds to educate people. The tobacco settlement funds have been somewhat successful.
Somehow I have no faith that these changes will be enforced, or appropriately drawn up by parties who actually have the knowledge to do so.
Have they?

I know a lot of my peers went to college for free with the Millennium Scholarship.

But so many young people vape now that it's becoming cool to smoke analog cigarettes. I barely knew anyone who smoked 10-20y ago. Many people that age now do.

Smoking tobacco is something people have done for centuries. Pretty unlikely that we'd eliminate it in a few decades.
If you inhale the smoke, it's quite irrelevant whether smoking an industrial cigarette, pipe or a hand-crafted cigar without additives. You'll probably get lung cancer anyway if you continue it long enough. Smoke is always carcinogenic.

I don't really get the point when there are many ways of getting nicotine without the smoke.

I don't smoke, but when I've talked to smokers a lot of it is about the ritual. Filling the pipe, cutting and smelling the cigar, or removing the cigarette from the pack, tapping it, lighting it up, the taste and smell of the smoke, it's all part of it not just the nicotine.
That’s not true. The lifetime risk of a smoker getting lung cancer is about 10-20%, not “probably” (somewhere between 15 and 30 times higher risk than a non-smoker).

In fact, only about half of smokers die prematurely from their smoking.

I mean, I’m not saying start smoking, but also let’s at least have accurate facts.

> By age 80y, an estimated 48.3% of current-smokers (41.1% never-smokers) will develop cancer, and 14% will develop lung cancer [0]

"The lifetime risk of a smoker getting lung cancer is about 10-20%".

Yup. That's probably true. It is also incredibly misleading, because that isn't the only cancer you are at risk from. So... I wouldn't call what you just said, an accurate fact.

[0] https://onlinelibrary.wiley.com/doi/10.1002/ijc.33685

OP said: “You'll probably get lung cancer anyway if you continue it long enough”.

That’s not true, and is why I focused on lung cancer. Don’t forget that smokers don’t just die of cancer, so even if we take your source, we still don’t have the proper picture.

That’s why I also added the point that about half of smokers die prematurely due to their smoking, because I was not planning to exhaustively list every possible cause of death which could be caused by smoking.

You're not wrong about smoke always being bad--there's a reason American Spirits have to have a disclaimer about "additive-free" not meaning healthier. Tobacco takes up alpha emitters from the soil and leaves them in your body--never good.

Pipe and cigar smokers are much less likely to smoke a pack's worth of tobacco a day. You also don't inhale them into your lungs, you hold the smoke in your mouth.

Smoking cigarettes is less about getting nicotine and more about having something to do when you are stressed etc.

Fun fact: the stress that smoking cigarettes relieves is only the stress caused by the addiction/relapse from nicotine. Surely, there might be some placebo effects going on, but nicotine is not a stress relieving chemical.

So really it is just about getting nicotine, but over time the ritual around the addiction adds to the addiction.

True, but I am vaguely aware of people taking like Zyn for performance enhancement reasons, and I don't think anyone starts smoking like that.
Zyn is freebase nicotine which does show some signs of being performance enhancing; mostly around focus. There are a lot of people with unmedicated ADHD self-medicating with Zyn, or vapes, or smoking due to the this.
Well, I suppose less radiation could be one of the advantages of a crack habit
It’s true and smoking marijuana is arguably as harmful as cigarettes but the pro-weed crowd throws a fit any time anyone points that out.
We've been harming children for even longer
Europeans started smoking tobacco in 1492 and it spread super fast.

It probably can't be eliminated completely, but if they slowly make it illegal for young people to start the habit it can be reduced

Vaping is distinctly less harmful than smoking.
I actually do not know if this is true.
Vaping is not healthy but there is a lot less material inhaled. No fine particles which do real damage.

So vaping is still unhealthy but less than smoking plant matters.

>Vaping is not healthy but there is a lot less material inhaled. No fine particles which do real damage.

Propylene glycol covers the alvoelae and over time (~15-20 years) blocks uptake of oxygen, causing respiratory failure and a slow, painful death.

Vegetable glycerine coats the lungs and over time (~10-25 years) blocks fluid from draining out of the lungs, causing congestive heart failure/pulmonary edema. Which ends up causing one to drown in their own bodily fluids and a slow, painful death.

If you disagree, please cite any long term studies that disprove the above. Thanks!

I do not disagree, but can you cite the studies proving this?

Also proof that people did die from respiratory failure due to propylene glycol inhaling?

You shouldn't ask for disprove studies if you don't provide proof studies.

>You shouldn't ask for disprove studies if you don't provide proof studies.

My point was that we don't know what the long-term effects of vaping are. Because there hasn't been time for the longitudinal studies that will tell us what those effects are.

I requested studies refuting those claims because I know they don't exist. I also know that studies confirming such claims don't exist either.

Making the statement that "...vaping is still unhealthy but less than smoking plant matters" is disingenuous because we have no idea what long-term (note that qualification) effects vaping does or does not have.

It might be that vaping increases human lifespan by 80%. Or it might be that vaping decreases lifespan by 25%. Or it might be that vaping either causes or prevents dementia. We just don't know. It may be that none of those things apply. Who knows? Not me. And not you or anyone else. Yet.

Because vaping hasn't been widely used for long enough to make claims about its long-term effects.

My claims are just as valid as yours ("...vaping is still unhealthy but less than smoking plant matters").

That was my point. My apologies for expecting you to make the conceptual leap and understand the above by making similarly unsupported claims as the one you made. I guess that wasn't the best way to do so. I'll try to do better in the future.

I hope I've cleared up your confusion.

Im not confused. A lot of the context you are inferring is just in your mind.

It's funny to see someone invent a narrative then have a conversation with himself while trying to gaslight another person that they invented the narrative.

We don't actually know that yet. The main studies are still ongoing, because this tends to be the kind of thing you measure over decades, and we haven't had those yet.

Does it increase the risk of Alzheimers? Does it riddle your brain with cancer at a later stage?

We don't know.

We do know that it is short-term less harmful, than something where most of the concerns are long-term.

Smoking's harms are observable in the short term! You don't need long-term longitudinal studies to show smoking is bad. And we have known mechanisms for that harm that relate to combustion. We know mechanically that vapes are not combusting plant material, and we also don't see the same kinds of obvious harms in the short term. It takes willful blindness to the ills of smoking to suggest that vaping might be as harmful or more harmful than smoking.
It takes "wilful blindness" to suggest vaping can be understood completely today.

We already know there are unexpected side-effects. Like kids starting to go blind, when they start young.

I didn't use Alzheimer's as a random example above. There is a known correlation.

So... Maybe it isn't combusting plant material. But it is probably causing brain damage in some form or another - and that is precisely the kind of symptom that requires a longitudinal study to understand the impact!

I suspect (anecdote) vaping is just as bad if not worse. People vape EVERYWHERE. Almost any place you can't smoke, people still vape. So - that it happens that way makes me think the total exposure is a lurking problem.
Analog cigarettes! I love how “analog” has become synonymous with everything more manual, natural, even or better.
My favorite is the “acoustic bike” instead of electric bike (the joke comes from guitars, I think)
I'll start calling normal chairs acoustic chairs now to stretch this joke even further.
ICCs? Internal combustion cigarettes
Alternative Meanings (Noun)Comparable Thing: Something similar or comparable to another thing (also spelled analogue).
Maybe you know different young people now ?

I saw way more smoking 10-20 years ago. All have quit now.

I see a good amount vape but rarely see cigarettes these days