Meta has agreed to a landmark settlement with attorneys general from 47 states, three territories, and the District of Columbia, resolving a high-profile lawsuit over the company's alleged role in harming young users on its Facebook and Instagram platforms. The deal, announced Wednesday, includes a payment of up to $17 billion to states, with an additional $1 billion to Texas, bringing the total to over $18 billion. The settlement, which still requires judicial approval, would end a trial that began in California and could reshape how social media companies handle minors for years to come.
Meta Sidesteps Trial, But Faces New Rules
The settlement brings a swift conclusion to a case that had been in litigation since 2023, when a coalition of state attorneys general accused Meta of designing addictive features that encouraged excessive use among teens and younger children. The states also alleged that Meta misled the public about the mental and physical health risks associated with its apps and collected data from users under 13 without parental consent. The trial, which lasted only a week, was expected to feature testimony from Meta CEO Mark Zuckerberg, but he will no longer testify. Instead, the court heard from Instagram chief Adam Mosseri on Tuesday, just a day before the settlement was announced.
While the financial payout is significant, the most impactful changes are the new platform safeguards. These measures are designed to give parents more control and to curb the most harmful aspects of social media use among minors. The terms will remain in effect for at least a decade, though some provisions, such as time limits, start with a five-year commitment that could extend if other tech companies join the framework.
Key Changes for Young Users
Under the settlement, Meta will implement a default daily time limit of two hours for users under 18, which can only be lifted by a parent. If other social media platforms agree to similar terms, the limit would drop to one hour. Additionally, a nighttime block between midnight and 6 a.m. will be enforced for minors, also subject to parental override. If other companies sign on, the block would shift to 10 p.m. to 7 a.m.
Notifications for users under 18 will be silenced from 10 p.m. to 7 a.m. and during school hours (8 a.m. to 3 p.m. from August 15 to June 15). Teens will receive prompts every 15 minutes of continuous use, and additional warnings when daily usage hits 60 or 90 minutes. The settlement also requires that minors no longer see like and reaction counts by default, and it disables cosmetic surgery and extreme makeup filters.
Meta will invest in stronger age assurance technology to detect users who lie about their age and to remove users under 13, who are currently prohibited from the platforms. Teens will also have the option to choose a non-algorithmic feed, which would show posts in reverse chronological order rather than personalized recommendations.
Meta Calls on Rivals to Follow Suit
In announcing the settlement, Meta explicitly called on YouTube and TikTok to adopt similar standards, arguing that the benefits would only be fully realized if the entire industry participates. The company has framed the deal as a new national framework for online safety, and it has already rolled out some features, such as the Teen Account program introduced in 2024, which includes default private accounts and content restrictions.
Some state attorneys general have welcomed the settlement, with California AG Rob Bonta estimating his state could receive between $1.5 billion and $2.1 billion. However, not all states are on board. New Mexico, which previously won a separate case against Meta, is not part of this settlement. Florida AG James Uthmeier dismissed the payout as "peanuts" and vowed to take the company to trial.
The settlement is a major victory for state regulators who have been pressuring social media companies for years to better protect children. It also comes amid broader scrutiny of tech giants, including recent legal actions against other platforms. The deal could set a precedent for how other social media companies handle youth safety, and it may prompt similar negotiations in the future.
As part of the agreement, Meta will pay the states over the next decade, with funds earmarked for programs to prevent or reduce mental health harms associated with social media. The company's total payout, including the Texas settlement, is just over $18 billion, which is a fraction of Meta's $201 billion revenue last year. Still, the platform changes are expected to have a significant impact on the user experience for millions of teens.
The settlement is a pivotal moment in the ongoing debate over social media regulation, and it remains to be seen whether other platforms will follow Meta's lead. For now, the company is positioning itself as a leader in safety, but critics argue that more needs to be done to address the root causes of online harm.
