Meta Platforms agreed to pay up to $16.7 billion to settle a sweeping US child safety lawsuit accusing the company of addicting children to Facebook and Instagram while collecting their personal data, according to court filings and statements from state attorneys general. US District Judge Yvonne Gonzalez Rogers suspended the trial following the agreement reached by a bipartisan coalition of 29 states, though total payouts could reach $17.1 billion when factoring in separate claims, according to reporting by CNBC.
Settlement Terms and App Changes
Under the proposed consent judgment, Meta must implement major platform transformations within months, according to California Attorney General Rob Bonta. The changes include mandatory daily usage limits of two hours for users under 18 that can only be removed by a parent, alongside nighttime blocks to curb late-night scrolling, according to Al Jazeera. Meta also agreed to hide likes and reaction counts for minors to prevent social comparison, remove cosmetic procedure filters, and disable push notifications during school hours, according to The Verge. Furthermore, the company will offer teens an option to use a non-personalized feed that does not rely on recommendation algorithms.
Financial Penalties and Industry Pressure
The financial agreement spans a 10-year payout period, with Meta expecting to accrue a legal expense of roughly $10 billion in the third quarter of 2026, according to CNBC. Mahoney. The settlement follows a series of legal setbacks for the company, including a New Mexico public nuisance case where a judge ordered Meta to pay hundreds of millions of dollars over child safety violations earlier in the year.
Did You Know?
Meta faced up to $1.4 trillion in potential fines before reaching the settlement with the coalition of state attorneys general, though plaintiffs had been seeking penalties closer to $200bn.
Frequently Asked Questions
What are the new time limits for teens on Meta apps?
Users under 18 will face a daily usage limit of two hours on Facebook and Instagram, which can only be lifted by a parent or guardian. Time restrictions may drop to one hour if competitors adopt similar terms.
Has the court approved the settlement?
US District Judge Yvonne Gonzalez Rogers suspended the six-week trial and indicated she is inclined to approve the agreement, but requires additional time to review the filings.
Do other tech companies have to comply?
The settlement terms do not legally bind rival platforms, but Meta and state officials have publicly called on YouTube and TikTok to adopt identical youth safety frameworks and time limits.
Want to stay informed on the latest tech regulations and digital privacy updates? Subscribe to our newsletter or explore our archive for more in-depth reporting.
Worth a look