Meta has agreed to pay up to $16.68 billion over the next decade and make major changes to how Facebook and Instagram serve its under-18 users.
The agreement ends a major U.S. case that accused the social media company of designing its platforms to encourage compulsive use among children and teenagers.
U.S. District Judge Yvonne Gonzalez Rogers approved the settlement on August 26, ending a federal trial that began eight days earlier. More importantly, state attorneys general described the broader agreement as the largest state consumer protection settlement outside the Big Tobacco settlements of the 1990s.
The case, brought by a 29-state bellwether coalition led by California, Colorado, Kentucky and New Jersey, resulted in a settlement joined by 47 states, D.C., and three U.S. territories. It alleged that Meta knowingly used addictive features, misled the public about the safety of its platforms, and collected personal information from children under 13 without parental consent. However, Meta denied wrongdoing, and the settlement does not count as an admission of liability.
What Meta Will Change for Teen Users
Beyond the $16.68 billion settlement, Meta has agreed to make changes to Facebook and Instagram for users under 18, including a default two-hour daily limit across Facebook and Instagram.
The social media giant will also strengthen measures designed to prevent children from accessing age-restricted content and introduce additional parental controls. Other changes include stronger age-assurance measures and adjustments to certain features that state officials argued could negatively affect young users.
Some reports also detail restrictions on notifications during school hours, changes to visible like counts, and limits on cosmetic-procedure filters for minors. The measures are intended to give teenagers and their parents more control over how the platforms are used.
Why the Settlement Matters
The case is part of a much wider legal fight over how social media companies design products used by children and teenagers. Meta has faced similar cases from individual states, school districts and families, while TikTok, YouTube and Snapchat have also faced lawsuits over alleged harms to young users.
The settlement also resolves separate privacy claims brought by California, Illinois, New Mexico and Washington, D.C.
The $16.68 billion figure is part of a broader agreement covering several legal disputes. Other reports have placed the total value of the settlements at about $17.1 billion or as much as $18 billion when additional payments and cases are included.
For Meta, the settlement closes a major courtroom battle while placing new requirements on how Facebook and Instagram operate for younger users. For U.S. states, it provides a nationwide set of changes after years of legal challenges over the way social media platforms affect children.
