Meta has agreed to pay up to $17 billion over 10 years and overhaul its social media platforms for teen users in a landmark child safety settlement with more than 40 states, the District of Columbia, and multiple territories, according to state officials and court records. California Attorney General Rob Bonta, who led the trial, told CNBC that the $17 billion figure is the highest amount ever paid in a case of this nature and will help prevent and remediate mental health harms for kids.
Mandatory Platform Changes for Teen Users
Under the terms of the agreement, Meta must implement a series of strict product changes for users ages 13 to 17, according to company announcements and court documents. The company will enforce a two-hour default limit for daily time spent on its apps, block access between midnight and 6 a.m., and mute notifications during school hours. Additionally, teen accounts will have likes hidden, cosmetic filters disabled, video autoplay made optional, and access to a non-algorithmic feed.
Meta stated it will roll out many of these default protections within six months, though introducing robust age assurance measures will take up to a year. Building a prediction model to identify users under 13 or between 13 and 17 involves analyzing network connections, follower lists, and happy birthday greetings, as age verification without facial recognition remains notoriously challenging.
Legal Fallout and Differing State Responses
The settlement cuts short a trial overseen by U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California, which had recently featured testimony from Instagram head Adam Mosseri and former Meta engineering director Arturo Bejar. Virginia Attorney General Jay Jones noted in a statement that the Virginia agreement is worth $353 million, calling it one of the biggest in state consumer protection history. However, not all officials are satisfied. Florida Attorney General James Uthmeier, who did not participate in the settlement and is pursuing separate litigation, told CNBC he was frustrated that some features are only subject to a five-year commitment.
Did you know? Meta generated $201 billion in revenue last year, but the company has previously stated that teenagers account for less than 1% of its overall revenue, according to public financial disclosures.
Industry Coordination and Financial Contingencies
In a push to change industry standards, Meta has called on rivals YouTube and Snap to join its efforts. According to company statements, Meta will pay $5.3 billion of the $17 billion settlement only if TikTok and YouTube agree to pay the same amount and adopt a default one-hour daily time limit on their respective apps. Neither TikTok nor YouTube immediately responded to requests for comment from CNBC regarding Meta’s proposal.
Former Meta director and child safety advocate Kelly Stonelake told CNBC that limiting the hooks platforms use to engage young people deals a significant blow to Meta’s current strategy. Meanwhile, the legal battles continue as regulators scrutinize the long-term impact of social media design on youth mental health.
Frequently Asked Questions
What are the main product changes coming to Instagram and Facebook for teens?
Meta must implement a two-hour daily time limit, block apps between midnight and 6 a.m., mute school-hour notifications, hide likes, disable cosmetic filters, and offer non-algorithmic feeds.
How much is the Meta settlement and who is receiving the funds?
The settlement totals up to $17 billion paid over 10 years, distributed among more than 40 states, the District of Columbia, and multiple territories to address youth mental health harms.
When will these new child safety features roll out?
Meta plans to introduce many of the default protections within the next six months, while stricter age assurance measures are expected to take up to a year to develop.
Did all U.S. states participate in the settlement?
No. While dozens of states and territories joined the agreement, officials such as Florida Attorney General James Uthmeier chose not to participate and are continuing separate litigation.
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