Meta Secures Legal Immunity for Child Data Use in $18 Billion Settlement

Meta has reached a settlement with attorneys general from 29 states that includes a payout of up to $18 billion and the implementation of child safety measures, as TechCrunch first reported. According to TechCrunch, the agreement contains a specific provision where the states have agreed "fully, finally, and forever" not to bring future, present, or past claims under the Children’ Online Privacy Protection Act (COPPA) or similar state laws regarding Meta’s use of children’s data.

This legal protection is granted so Meta can develop and test a model to detect users under the age of 13, a task the company must begin within one year of the agreement’s effective date. While the settlement prohibits Meta from using data from children under 13 for algorithmic optimization, marketing, or ad targeting, TechCrunch reports that the agreement does not specify the volume of behavioral information Meta will retain or the duration of that retention.

Legal experts cited by TechCrunch raise concerns over the enforceability of these limits. Peter Jackson, a Data & IP attorney at Greenberg Glusker LLP, stated the carve-out could "disincentivize future enforcement actions." Joshua Wurtzel, a partner at Schlam Stone & Dolan LLP, noted that while the covenant not to sue would not apply if Meta used data outside the settlement’s lines, such disputes would be complicated. Additionally, TechCrunch notes that because the FTC is the primary enforcer of COPPA and was not a party to the settlement, it is unclear if the federal agency has agreed to similar compromises.