Meta has reached a major settlement with dozens of US states over allegations that it designed Instagram and Facebook to make minors addicted to its platforms, agreeing to pay up to $17.1 billion and introduce significant new restrictions for teenage users.
The agreement, which still requires approval from a federal judge in Oakland, California, follows lawsuits brought by a coalition of states accusing Meta of deliberately keeping teenagers engaged, misleading the public about the impact of its platforms on children, and violating federal laws governing the collection of data from children under 13.
Two-hour daily limit
Under the proposed settlement, Meta has agreed to impose default restrictions on users aged 13 to 18 in participating states.
Within six months:
- Teenagers will be limited to two hours per day across Instagram and Facebook combined.
- Access to the platforms will be blocked from midnight until 6am, except for messaging functions.
- Notifications will be disabled from 10pm until 7am and during school hours.
- Public "like" counters will be hidden.
- Beauty filters that imitate cosmetic surgery procedures will be disabled.
Only a parent whose account is linked to the teenager's profile will be able to relax these restrictions.
An independent monitor will oversee implementation.
$11.7bn guaranteed, up to $17.1bn total
Of the total settlement value:
- $11.7 billion is guaranteed and will be paid in ten annual instalments through 2035.
- An additional $5 billion would become payable only if TikTok, YouTube and Snap accept comparable restrictions.
Meta will also pay $459 million to 46 states to settle claims related to the Cambridge Analytica data scandal.
Some states opt out
The agreement covers 51 US states and territories and resolves around 15 separate state-level legal proceedings.
However, New Mexico and Florida are not participating and will continue their own legal cases against the company.
Meta denies wrongdoing
The settlement does not include any admission of liability.
Meta continues to reject allegations that it intentionally designed its platforms to harm young users.
Chief Legal Officer Curtis Joseph Mahoney said broader industry action is needed.
"Teenagers use dozens of apps, so we need an industry-wide solution," he said, referring to competitors including TikTok and YouTube.
Previous court defeats
The settlement follows two major courtroom setbacks for Meta earlier this year.
In March, a Los Angeles jury found Meta and YouTube liable for contributing to the addiction of a teenage girl and awarded $6 million in damages.
In New Mexico, Meta was ordered to pay close to $1 billion in fines and compensation.
The company has appealed both rulings.
More lawsuits pending
Numerous legal actions remain active across the United States.
Families and school districts continue to pursue claims against Meta, Snap, TikTok and YouTube, alleging that the platforms have contributed to social media addiction and worsened mental health and behavioural problems among young people.
