There are reports children are being approached and groomed online by predators.
The 45-minute course uses realistic scenarios to teach teens safer online decision-making for Safer Internet Day.
The tech giant is prototyping a standalone disappearing photo app called Instants.
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It comes as the platform promotes new tools for parents.
The terms of the settlement have not been announced.
Families say under-16s were back on the app within minutes.
'We are deeply saddened that young Aussies can no longer connect with their nearest and dearest.'
The Amazon-owned live-streaming service has long popular among gamers.