Meta Settlement Gives Limited Legal Protection Over Kids’ Data Use for AI Age Checks

Meta’s settlement with attorneys general from 29 U.S. states includes a provision that limits future state-level legal action regarding the company’s use and retention of children’s data to develop age-assurance technology.

The agreement, which requires Meta to pay up to $18 billion and implement additional child safety measures, allows the company to use certain children’s data for the limited purpose of training and testing a system designed to identify users who may be under 13.

Under the settlement, Meta must develop, train, and begin testing an age-assurance model within a year of the agreement taking effect. While the document does not require the system to use artificial intelligence, Meta’s existing age-detection tools rely on AI technology.

The agreement states that Meta cannot use data from users under 13 for advertising, marketing, or algorithmic optimisation. However, state attorneys general agreed not to bring past, present, or future claims under the Children’s Online Privacy Protection Act (COPPA) or similar state laws related specifically to this use of children’s data.

The provision has raised questions because COPPA is a federal law mainly enforced by the Federal Trade Commission, which was not a party to the settlement. It remains unclear whether the FTC would follow the same approach.

Meta will also be required to keep information collected for age assurance separate from other company systems. An independent auditor will monitor compliance, but experts have raised concerns about how difficult it may be to ensure the data is not used beyond the settlement’s limits.

The agreement does not fully preclude future legal action if Meta uses the data for purposes outside the allowed purpose. Joshua Wurtzel, a partner at Schlam Stone & Dolan LLP, said the protections would not apply if Meta moved beyond the settlement’s boundaries.

Legal experts also noted that the carve-out could complicate future enforcement efforts by requiring disputes to focus on whether Meta’s use of the data remained within the agreement.

The settlement reflects a broader challenge facing technology companies developing AI systems that require access to large amounts of user information. In Meta’s case, the company argues that analysing data is necessary to identify and remove accounts belonging to children under 13.