Meta Reaches $17 Billion Settlement with States in Landmark Trial Over Teen Social Media Addiction

A security guard stands watch by the Meta sign outside the headquarters of Facebook parent company Meta Platforms Inc in Mountain View, California, US, November 9, 2022. (Reuters)
A security guard stands watch by the Meta sign outside the headquarters of Facebook parent company Meta Platforms Inc in Mountain View, California, US, November 9, 2022. (Reuters)
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Meta Reaches $17 Billion Settlement with States in Landmark Trial Over Teen Social Media Addiction

A security guard stands watch by the Meta sign outside the headquarters of Facebook parent company Meta Platforms Inc in Mountain View, California, US, November 9, 2022. (Reuters)
A security guard stands watch by the Meta sign outside the headquarters of Facebook parent company Meta Platforms Inc in Mountain View, California, US, November 9, 2022. (Reuters)

Meta has agreed to pay $17 billion and add stronger child-safety measures to its Facebook and Instagram platforms to end a landmark trial over teen social media addiction and settle claims filed by 47 states, state attorneys general announced Wednesday.

The settlement resolves a pivotal legal case years in the making that sought to hold the tech giant accountable for the role its platforms played in undermining children’s mental health. The effort targeted features designed to hook young people’s attention.

“For years, Meta intentionally deceived the public about the addictive and harmful design features that have wreaked havoc on youth mental health," Virginia Attorney General Jay Jones said. The settlement "will put an end to these dangerous practices and deliver meaningful relief that will protect children from online harm.”

California Attorney General Rob Bonta said the money would be paid out over 10 years, with the state getting at least $1.5 billion if the settlement is approved by the court. New Jersey expects to receive at least $525 million. Massachusetts said it was in line for at least $366 million. Virginia's share is worth $353 million.

Meta said in a blog post that it was “building on our longstanding efforts to empower parents and support teens.”

“Ensuring teens have a safe and productive experience on our platforms is an absolute imperative for Meta,” the company said. “We want to get this right for parents and teens, and that’s why we partnered with state attorneys general to set a new industry standard."

The company urged rivals TikTok and YouTube to adopt similar safety measures.

The $17 billion settlement is a fraction of Meta's 2025 revenue of $201 billion.

The agreement cuts short an ongoing court case involving California, Colorado, Kentucky and New Jersey, which were among 29 states that sued Meta in 2023. CEO Mark Zuckerberg was among those expected to take the stand before a jury in federal court in California.

The lawsuit accused Meta of contributing to the youth mental health crisis by deliberately designing features that addict children to its platforms and hiding them from the public. The case also argued that Meta violated federal laws by routinely collecting data on children under 13 without their parents’ consent.

The trial kicked off last week in Oakland, California, with US District Judge Yvonne Gonzalez Rogers overseeing the proceedings. Adam Mosseri, the head of Instagram, began his testimony late Tuesday and defended Meta’s record and progress on child safety and privacy.

The cases in other states had been expected to go to trial later. In addition, nine attorneys general filed lawsuits in their respective states.

New features to include time limits and curbs on push notifications

Under the proposed settlement, Meta agreed to adopt a series of safety features, including a “hard cap” on daily time limits and pauses for children using Instagram and Facebook.

It will eliminate push notifications during weekday school hours and bring in “robust” age-assurance measures and “age-appropriate” content controls to prevent bullying and harmful material about eating disorders and self-harm.

There will be stronger and more user-friendly parental controls and limits on social comparison features such as “like” counts.

An independent auditor will assess how Meta is implementing the safety features and how effective they are.

Meta put the settlement at $18 billion, a figure that apparently includes a large award for Texas.

The money is to be paid out annually over 10 years, to fund youth online safety initiatives. However, the company said 30% of that amount — about $5.3 billion — will only be released to states if rivals YouTube and TikTok meet two conditions: implementing similar safety features, including a one-hour daily time limit, a nighttime block and age-assurance measures; and paying the same amount, split between the two companies.

Neither YouTube owner Google nor TikTok responded immediately to requests for comments.



Anthropic AI Model Submits False Homicide Tip to Police Website

The Anthropic logo is seen in this illustration taken May 20, 2024. (Reuters)
The Anthropic logo is seen in this illustration taken May 20, 2024. (Reuters)
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Anthropic AI Model Submits False Homicide Tip to Police Website

The Anthropic logo is seen in this illustration taken May 20, 2024. (Reuters)
The Anthropic logo is seen in this illustration taken May 20, 2024. (Reuters)

An Anthropic artificial intelligence model submitted a false homicide tip through a Philadelphia police website, the department said in a statement, the latest incident of rogue behavior from the powerful technology. 

Anthropic notified authorities earlier this week and said that an automated testing process was responsible for the submission, ‌according to the ‌police. 

The fast-advancing technology has become a matter ‌of ⁠keen national interest amid ⁠reports of AI agents hacking into corporate computer networks, and warnings from researchers that it could one day pose an existential threat to humanity. In September, Anthropic rival OpenAI apologized for the hacking of an Australian health data portal by a rogue AI agent, the first known instance of an AI agent exploiting a government website. 

Previous ⁠incidents have involved AI agents hacking into vulnerable systems ‌or commandeering unsanctioned platforms to communicate ‌with one another. This is the first known case in which a rogue ‌AI appears to have tried to communicate a bogus tip ‌to authorities. 

The Philadelphia police department said the tip "was flagged as spam and was never forwarded to the Real-Time Crime Center for investigative vetting or dissemination," and added that Anthropic had told them the company intended to publish ‌a report on the incident on Friday. 

Anthropic did not immediately respond to a request for comment. 

Pennsylvania law ⁠specifies it ⁠is generally a misdemeanor crime for "a person" to knowingly give false reports to law enforcement authorities. This includes "information relating to an offense or incident when he knows he has no information relating to such offense or incident." 

Police quoted Anthropic as telling them the testing process was stopped after the incident was uncovered. 

The false tip was submitted through PhillyUnsolvedMurders.com concerning an unsolved homicide. The tip, dated July 18, 2026, purported to come from someone who might have information about the case, the police said. 

Police said they did not have evidence of unauthorized access to their systems or compromise of police department data. 


OpenAI Says it Has Fired 3 Researchers for Violating Sensitive Information Policy

FILE PHOTO: A keyboard is placed in front of a displayed OpenAI logo in this illustration taken February 21, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: A keyboard is placed in front of a displayed OpenAI logo in this illustration taken February 21, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
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OpenAI Says it Has Fired 3 Researchers for Violating Sensitive Information Policy

FILE PHOTO: A keyboard is placed in front of a displayed OpenAI logo in this illustration taken February 21, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: A keyboard is placed in front of a displayed OpenAI logo in this illustration taken February 21, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

OpenAI fired three of its researchers last week after an investigation found they violated policies on handling sensitive information, the AI major said in a post on X on Friday.

OpenAI's statement comes after the dismissed researchers Jasmine Wang, Tomek Korbak and Mikita Balesni published a ⁠letter outlining the circumstances ⁠of their termination, arguing that their abrupt firing could create uncertainty among remaining employees and undermine the culture that previously allowed researchers to raise safety concerns.

"I believe we were fired for prioritizing safety over the near-term interests of OpenAI as a corporation," Balesni said in an X post that accompanied the letter.

OpenAI, ⁠however, asserted that the dismissal was not related to raising safety concerns or speaking out.

"Our internal investigation uncovered a significant breach of trust beyond what's outlined in the letter they published and we stand by the decision to not continue their employment," Reuters quoted OpenAI as saying.

"Safety and research debates happen every day at OpenAI, often spirited and highly critical. We actively encourage these discussions and consider them essential to making the right decisions...We have not and do not terminate any of our employees for raising ⁠concerns," it ⁠said.

While OpenAI did not reveal the specifics of the alleged violations, Wang, Korbak, and Balesni said in their letter that they were not the source of a news article published on The Information last month about security concerns around OpenAI's latest AI model 'Astra'.

This comes as current and former researchers at major AI firms OpenAI, Google DeepMind, and Anthropic warn that companies are doing too little to guard against the potential fallout of building self-improving AI systems that could become difficult for humans to control.

In July, OpenAI agents broke out of their testing arena and hacked AI firm Hugging Face.


Chinese AI Tool Pulled to Prevent 'Misuse' after South Korea Hacks

Illustrative image of hackers carrying out a cyberattack (Reuters)
Illustrative image of hackers carrying out a cyberattack (Reuters)
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Chinese AI Tool Pulled to Prevent 'Misuse' after South Korea Hacks

Illustrative image of hackers carrying out a cyberattack (Reuters)
Illustrative image of hackers carrying out a cyberattack (Reuters)

Chinese AI cybersecurity tool Artex said it stopped programmers from accessing its source code, acknowledging misuse by "bad actors" after South Korea linked it to several recent bank hacks.

Artex was designed to help organizations strengthen their cyber defenses through security testing to find potential weak points.

But the South Korean government said this week it was "highly likely" Artex had been used in data breaches at more than seven financial institutions, including major banks.

Artificial intelligence's ability to find previously unknown ways to hack into computer systems is in the global spotlight, as leading labs release ever-more advanced models.

Artex was "abused by some bad actors" to launch cyberattacks, the tool's developer "Autumn-27" wrote Thursday on code-hosting platform GitHub.

"Given the misuse of the tool, the Artex project will no longer be updated and will be converted to closed-source," the developer said.

"No further versions will be released to the public, nor will maintenance support be provided."

Artex had been open-source -- allowing programmers to download its underlying code and customize it to suit their purposes.

Using Artex for cyberattacks was "entirely contrary to" the developer's intentions, they added, without referring directly to the alleged South Korean cases.

South Korea's Financial Services Commission says more than 68,000 people have been affected by the hacks.

Shinhan Bank, one of the breached institutions, said information attached to loan applications for about 25,000 customers had been leaked -- including names, phone numbers and annual income.

- 'Financially motivated' -

In Japan, meanwhile, around 20 companies have said their data may have been compromised in a spate of similar cyberattacks potentially impacting millions of customers.

The Japanese government has called on companies to strengthen their cyber defenses.

"At this stage, it is not clear what the background to these cases is or whether there are any links between them", Japan police chief Yoshinobu Kusunoki said on Thursday.

As AI makes hacking more sophisticated, "the scope of the damage is spreading across all areas on a scale that is difficult to compare with the past", South Korean President Lee Jae Myung said on Tuesday.

US cybersecurity giant CrowdStrike said on Wednesday that its investigations into digital clues suggested the attacker had used Artex, and was potentially a 26-year-old based in China.

"The threat actor is likely a Chinese speaker and financially motivated," a CrowdStrike blog post said.

Experts told AFP that Artex going closed-source would make the code harder for new users to obtain and adapt.

But the decision "cannot remove copies already downloaded or prevent people from continuing to use them", said Poe Zhao, founder of the analysis publication Hello China Tech.

"Because the code was public, people could download it, change it and run it themselves. The developer could ask users to follow the rules, but had little control over their actions," he added.

Ilya Kulyatin, CEO of Foundry Labs and founder of the Tokyo AI (TAI) tech community, said users of open-source programs can "remove restrictions built into the tool" which "makes certain forms of misuse easier".

"But openness also benefits defenders: researchers can inspect the code, identify weaknesses and improve protection."