Meta has reached a settlement worth up to about $18 billion with a bipartisan coalition of 52 state attorneys general over allegations that Facebook and Instagram were intentionally designed to promote compulsive use by children and teenagers.
The settlementAwaiting court approval, the lawsuit resolves a lawsuit filed in 2023 by California Attorney General Rob Bonta and a bipartisan coalition of state attorneys general.
The lawsuit accused Meta of developing features that encouraged compulsive use among young users while misleading users, families and the public about the risks of its platforms.
The attorneys general also alleged that Meta illegally collected and used data from children under the age of 13 in violation of federal and state laws, including the Children’s Online Privacy Protection Act (COPPA), the California False Advertising Act and the California Unfair Competition Act.
As part of the agreement, Meta will introduce new restrictions for users under 18 on Facebook and Instagram, including a standard two-hour daily usage limit that can only be disabled with parental permission. If YouTube and TikTok agree to similar terms, that limit would be reduced to one hour.
Meta also blocks teen use of its apps by default between midnight and 6 a.m. and mutes most notifications between 10 p.m. and 7 a.m. and during school hours, which a parent can change. Direct messages and some account safety or security alerts are exempt from some of these restrictions.
Other requirements include hiding like and reaction counts from teenagers, blocking cosmetic surgery filters, providing an option for a non-personalized feed, strengthening parental supervision tools, and using additional age verification technology to identify users under 18 and remove children under 13.
An independent auditor will also monitor Meta’s compliance with the agreement, while the company is prohibited from making false or misleading claims about its security features.
According to Meta, the agreement includes payments of approximately $18 billion over ten years. The participating states are expected to receive around 12.7 billion US dollars.
Another $5.3 billion will only be released if YouTube and TikTok make similar changes, including one-hour daily limits, nighttime restrictions and age protection measures, and each make a corresponding payment.
“The agreement is designed to drive industry adoption and ensure teens receive consistent protection across the apps they use most, like YouTube and TikTok. As industry peers adopt this new standard, certain provisions will be strengthened.” Meta announced.
Of that money, California expected between $1.5 billion and $2.1 billion.
“How a significant portion of the payment received from California is spent will ultimately be decided by the Legislature and the Governor, but in the proposed settlement it is earmarked for purposes related to preventing or remediating mental health or other harms to young Californians associated with social media use,” the states Press release by Attorney General Bonta.
Meta said it expects to incur approximately $10 billion in legal fees related to the agreement in the third quarter of 2026
Most of the new protections must remain in place for 10 years, and the agreement also establishes an independent research foundation focused on teen well-being and social media use.
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