Watch CBS News

Questions remain around how Pennsylvania's part of Meta settlement will be handled and spent

Nearly one month ago, the owner of Facebook and Instagram came to a landmark settlement with 48 states, including Pennsylvania. Meta agreed to pay nearly $18 billion and add stronger child safety measures, but questions remain surrounding who controls the funds and how they will be spent.

The funds resolve claims arguing the tech giant's platforms were intentionally designed to addict children and harm their mental health. As part of the deal, Meta said it will also impose new daily time limits for teens and stronger parental controls, among other child safety measures.

As for the funds, Pennsylvania is guaranteed a minimum of $516 million, which includes a payment to settle claims against Meta for its sharing of nonpublic information about Facebook users with third parties leading up to the 2016 election. However, the state could receive a maximum of $729 million with contingency funds if Meta's competitors YouTube, TikTok and Snapchat come to the table and agree to the same safeguards.

The settlement lays out that the money will go toward youth online safety initiatives in the states, such as for crisis intervention hotlines, school and summer activities, phone-free programs, public health advertising and more.

What's clear is Meta will distribute the money in installments over 10 years, but who is responsible for handling these funds?

The settlement said the money "shall be distributed to the Pennsylvania Office of Attorney General, to be deposited into an interest-bearing account (the 'Meta Settlement Fund')" and it goes on to say it "shall be expended, as directed by the Office of Attorney General, for any lawful purpose" and is "consistent with [the AG's] authority."

However, based on the state fiscal code, settlement money goes to the Commonwealth's General Fund, unless the legislature or a court directs otherwise.

While a court approved the Meta deal, the state constitution said public money can only be spent with lawmakers' approval, so the question remains whether Pennsylvania Attorney General Dave Sunday's office has the power to both create and control this fund.

State Rep. Mandy Steele of District 33 wants a board made up of a variety of experts, lawmakers, the governor and the attorney general.

"This is just too big to be managed by one person or one office," Steele said. "We need to make sure that we are directing it there to mitigating this problem, to getting kids off screens and away from devices that are the most addictive thing that humans have ever dealt with."

KDKA reached out to the Pennsylvania Office of Attorney General for comment. A spokesperson sent the following statement: "We are currently doing the necessary stakeholder outreach that is required with a sudden influx of funds. Transparency and accountability are critical as we move forward to ensure these funds are used to do the most good for those harmed by these platforms and further protect Pennsylvanians."

More money could be on the way to the state with pending lawsuits against Snapchat and TikTok.

View CBS News In
CBS News App Open
Chrome Safari Continue