Last week, social media giant Meta agreed to a $17.1 billion settlement with dozens of state attorneys general over a slate of consumer protection lawsuits. As part of the agreement, Meta must add a host of safety features to protect teens on Facebook and Instagram.
The proposed Settlement Agreement is still waiting for final court approval. If approved, Attorney General Tim Griffin says Arkansas would receive more than $172.4 million.
But when will Arkansas receive its share of the settlement and where will the money go? Here is what the proposed Settlement Agreement says:
Meta would pay the settlement money directly to the Arkansas Attorney General’s Office. The agreement’s payment language says “For the State of Arkansas, payments . . . shall be made directly to the Office of the Arkansas Attorney General.”
The settlement says the State of Arkansas may use the settlement money “for any lawful purpose.”
Settlement money in consumer protection cases often funds initiatives to address the harm that prompted the lawsuit in the first place.
For example, Arkansas uses tobacco settlement money to fund the State’s Tobacco Prevention and Cessation Program and other public health initiatives.
Arkansas uses money from an opioid settlement to address the opioid crisis.
Attorney General Griffin’s office has said the settlement funds from the lawsuit against Meta “will be spent consistent with the agreement, including on mental health and keeping our kids safe.”
Settlement payments to Arkansas would be made annually over the next ten years and could be nearly a quarter of a billion dollars.
At a minimum, Arkansas would receive $17,245,993.63 from Meta within 30 days after the settlement takes effect.
Assuming the settlement takes effect this year, Arkansas would then receive another $17,245,993.63 every January 15 until 2035.
That means over the next 10 years, Arkansas would receive a minimum $172,459,936, but Meta could be forced to pay more if certain “contingencies” in the settlement are met.
For example, if Snapchat, TikTok, and YouTube become subject to teen age-verification and usage requirements that are substantially similar to Meta’s — and if certain other conditions are met — Meta would pay Arkansas another $7.4 million per year.
Several lawsuits are currently in play against TikTok and other social media platforms that could force them to adopt youth-safety and usage restrictions that are similar to Meta’s.
Between minimum payments and the other contingencies in the Settlement Agreement, Arkansas could receive close to $250 million from Meta over the next decade.
Tech platforms like Meta are multibillion-dollar corporations. The men and women who profit from these businesses have a responsibility to protect their users — especially teenagers.
Children deserve proactive protection online. If tech companies won’t give children that protection, then it’s up to voters and elected officials to make sure they get it.
Family Council appreciates Arkansas Attorney General Tim Griffin for going to court to protect kids online.
Articles appearing on this website are written with the aid of Family Council’s researchers and writers.
