Meta’s recent $18 billion settlement with attorneys general from 29 states addresses social media harms to children but includes a notable clause allowing the company to retain certain data from users under age 13. This provision permits Meta to use this data narrowly for developing and testing an age-assurance model aimed at detecting under-13 accounts, an important step to improve child safety measures on its platforms. The settlement mandates that this model be operational within a year of the agreement’s effective date, though it does not require the technology to be AI-based—despite Meta’s current reliance on AI for age detection.

The agreement specifically exempts Meta from potential lawsuits under federal and state child protection laws, such as COPPA (Children’s Online Privacy Protection Act), related to its use of children’s data for these model-building purposes. This legal protection means the state attorneys general will not bring claims against Meta regarding its data handling in this context, effectively providing a long-term pass. However, Meta is still prohibited from using the data for advertising, marketing, or algorithmic content optimization targeting children, which aims to limit commercial exploitation of this sensitive information.

Legal experts note this compromise is unusual given the nature of the case centered on child safety, and it raises concerns about enforcement. COPPA enforcement is primarily the responsibility of the Federal Trade Commission, which did not participate in this settlement, leaving open questions about federal oversight. Meta must isolate children’s data to ensure it is used solely for the purpose of age detection, with an independent auditor appointed to monitor compliance. Despite these safeguards, there is uncertainty about how strictly the data will be compartmentalized or how Meta’s use of such data might evolve.

The settlement also highlights broader challenges faced by AI-driven platforms that require extensive user data to function effectively, especially for sensitive tasks like age verification. While the deal attempts to balance child safety with technological development, it potentially reduces the ability of states to pursue future enforcement actions related to children’s data privacy. Observers warn that this legal carve-out may disincentivize robust oversight, complicating future disputes over whether Meta uses data within the settlement’s specified limits.