Meta Platforms has agreed to a sweeping settlement with a coalition of state attorneys general, resolving a high-profile lawsuit that accused the company of engineering its social media apps to hook young users. The deal, announced Wednesday by California Attorney General Rob Bonta, could cost the company up to $17 billion over the next decade and imposes significant operational changes on Facebook and Instagram.

Under the proposed terms, Meta will introduce a default two-hour daily time limit for users under 18, restrict notifications during school hours, and block app access during overnight hours. The company also agreed to ban certain cosmetic filters, including those that simulate plastic surgery, according to Bonta's office. The settlement is subject to approval by a federal judge.

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“Meta has agreed to make massive transformations that will reduce the risk of harm from its platforms — and will do it within months,” Bonta said in a press release. “We are talking about time limits, stopping notifications during school, a block on the app during critical overnight hours, bans on plastic surgery filters, and so much more.”

The lawsuit, originally filed in 2023 by 29 states, alleged that Meta designed features to encourage “excessive use” among teenagers and younger children, while misleading the public about the mental and physical health risks. The complaint also accused the company of collecting data from users under 13 without parental consent, a violation of federal law.

While the original complaint sought a staggering $1.4 trillion in penalties, this month's trial was set to cover only four states: California, Colorado, Kentucky, and New Jersey. The settlement, however, applies to all participating states, though the financial terms vary based on population and other factors.

Meta’s chief legal officer, C.J. Mahoney, framed the deal as a new industry standard, urging competitors like TikTok and YouTube to adopt similar safeguards. “The framework we’ve negotiated will empower parents to easily manage how their children access our platform,” Mahoney said in a statement. “This framework will only work if all our peers join us. Because teens move fluidly across dozens of apps, we need an industry-wide solution.”

The settlement is a major development in the ongoing battle over tech regulation and youth safety, though some critics argue that voluntary measures may not go far enough. The agreement also comes as states are increasingly taking the lead on policy initiatives that the federal government has stalled on, reflecting a broader trend of state-level action on tech issues.

Legal experts note that the settlement avoids a potentially lengthy and damaging trial for Meta, which had faced mounting evidence from internal documents and whistleblower testimony. The company has consistently denied allegations that it deliberately designed addictive features, but has acknowledged the need for more robust parental controls.

If approved, the settlement will mark one of the largest state-led enforcement actions against a tech giant, and could set a precedent for how other platforms handle teen safety. The timeline for implementation remains tight, with Bonta indicating that many changes would take effect within months.