Fascinating. There are probably some issues with this, but it should be critiqued only with the constant reminder that Metq and Google probably have more data about your mental health than any therapist would dream of having, and their exploitation happens under those circumstances.
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The main issue with it is using it to further surveillance state ID laws for social media. Meta didn't do "enough to protect children", but the real story here is that they knew full well exactly what their algorithms and platforms were doing and embraced it because keeping kids (and adults) depressed and unhappy left them in a position to make boatloads of money off them.
The other issue I have with it is how little they have to pay per infraction.
I consider the most damning part to be the fact that they have so much data to abuse to begin with. Of course, you're probably right, and that's how they'll try to spin it.
It's just like the Tobacco companies who knew of their product's danger but also wanted to keep making money.
Nobody will go to jail, some politicians will receive motor carriages and luxury vacations and hundreds of thousands of young people will have to deal with the problem on their own.