Meta has agreed to pay $5.4 billion in damages to 29 US states to settle allegations that it misled customers about its handling of their personal data, particularly with regards to children's information. The settlement allows Meta to retain certain data from minors under the age of 13 for use in training and testing its AI models designed to detect child exploitation online. According to reports, this means that Meta will continue to collect and process vast amounts of data on young users, including photos, videos, and online activities.
The deal has raised concerns about the long-term consequences of allowing companies like Meta to retain children's data for use in AI-powered moderation systems. Critics argue that the practice undermines efforts to protect minors from exploitation and abuse online. As a result, many lawmakers have expressed frustration with the settlement, calling on regulators to take further action against Meta.
The $5.4 billion damages package is significantly lower than some experts had predicted due to Meta's reported compliance with previous settlements over similar issues. The company has maintained that its practices are in line with industry standards and that the data retention measures it has put in place were designed to protect users' rights while also allowing for effective moderation of online content.