Meta Platforms, the parent company of Facebook and Instagram, has agreed to pay approximately US$338,000 to the Israel Class Action Fund to settle a lawsuit.

The class action, filed in the Central District Court in Lod, accused Meta of misusing phone numbers submitted by users for two-step verification, allegedly using them for advertising.

Meta denied the claims but reached a settlement after court-recommended mediation.

As part of the settlement, Meta updated its policies on phone numbers provided for two-step verification.

The company clarified that these numbers will only be used for security purposes and not for personalized advertising.

The funds from the settlement will support the Israel Class Action Fund, as compensating individual users was deemed impractical.

The settlement was approved by the Central District Court, which found it to be fair and reasonable, though Meta did not admit liability.

Recent Meta developments