Meta has agreed to pay $17 billion and introduce stronger protections for children on Facebook and Instagram, ending a major trial over claims that its platforms contributed to teen social media addiction. The proposed settlement resolves claims brought by 47 states and could become one of the most important agreements yet over how social media companies protect young users.
A Landmark Settlement Ends a Major Legal Battle
The agreement ends a federal trial in Oakland, California, involving California, Colorado, Kentucky and New Jersey. Those states were among 29 that sued Meta in 2023, accusing the company of deliberately designing Facebook and Instagram features to keep children using the platforms for longer periods.
The lawsuits also accused Meta of hiding potential harms from the public and routinely collecting information from children under 13 without parental consent in violation of federal law.
Virginia Attorney General Jay Jones accused Meta of having “intentionally deceived the public” about harmful and addictive design features. He said the agreement would help protect children from online harm.
If the settlement receives court approval, it will resolve state litigation against Meta. However, the company will continue to face separate lawsuits filed by individuals and school districts around the country.
Billions Could Support Children’s Mental Health
The settlement will provide states with billions of dollars over the coming years. California Attorney General Rob Bonta said payments will be made over 10 years, with California receiving at least $1.5 billion.
New Jersey expects at least $525 million, Massachusetts is expected to receive at least $366 million and Virginia’s share is valued at $353 million.
States will be able to use settlement funds for programs that support children’s mental health. These could include after-school and summer programs as well as digital literacy counselors.
The $17 billion agreement is significant, although it represents only a portion of Meta’s business. The company reported $201 billion in revenue during 2025.
Facebook and Instagram Will Get New Teen Safeguards
Money is only one part of the agreement. Meta has also agreed to make major changes to the way children and teenagers use Instagram and Facebook.
The proposed protections include hard daily time limits and pauses designed to reduce the amount of time children spend on the platforms. Push notifications will also be turned off during weekday school hours.
Meta will introduce stronger age verification measures and age-appropriate content controls. Those protections are intended to reduce children’s exposure to bullying and harmful material involving issues such as eating disorders and self-harm.
Parents will receive stronger and easier-to-use controls, while social comparison features such as visible “like” counts will face additional limits. An independent auditor will monitor how Meta introduces the protections and whether they are working effectively.
Sacha Haworth, executive director of The Tech Oversight Project, welcomed the protections but warned that lasting change may require federal action. She said only Congress can ensure the safeguards “are permanent.”
Meta Says the Deal Could Set an Industry Standard
Meta has defended its efforts to protect younger users and says the settlement builds on safety measures it has already introduced.
In a statement, the company called teen safety “an absolute imperative for Meta” and said its agreement with state attorneys general could help establish a new industry standard.
Meta also called on competitors TikTok and YouTube to introduce similar protections.
The company values the broader settlement at $18 billion, apparently including a large award involving Texas. About 30% of that amount, roughly $5.3 billion, would only be released to states if TikTok and YouTube meet certain conditions.
Those conditions include introducing similar safety protections, such as a one-hour daily limit, nighttime restrictions and age-assurance measures. TikTok and YouTube would also have to provide an equivalent amount of money between them.
Years of Scrutiny Led to the Court Fight
The federal lawsuit grew from an investigation led by a bipartisan group of state attorneys general. Public scrutiny increased after reports beginning in 2021 raised questions about what Meta knew regarding Instagram’s possible effects on teenagers, particularly teen girls dealing with mental health and body image concerns.
Meta has introduced several protections since then. Teen Accounts, for example, give younger users stronger privacy, messaging and content settings.
Critics and some former Meta employees have argued that these changes did not go far enough. Former Meta engineering director Arturo Béjar testified during the trial that the company placed too much importance on engagement and profits when designing its products.
“If you step away from the product,” Béjar told the court, Meta would lose the opportunity to make money from that user.
Instagram head Adam Mosseri also testified during the trial and defended Meta’s progress on child safety and privacy. Meta CEO Mark Zuckerberg had been expected to testify before the settlement brought the proceedings to an early end.
A Turning Point for Social Media and Child Safety
The Meta settlement could have consequences well beyond Facebook and Instagram. Social media companies are facing growing legal pressure over claims that certain platform features encourage excessive use and expose children to harmful content. Meta and YouTube were already found liable in another landmark social media addiction case earlier this year.
If approved, the $17 billion agreement will combine major financial penalties with changes to how young people experience two of the world’s largest social networks. The settlement does not end every lawsuit Meta faces, but it could influence future rules, lawsuits and industry standards surrounding children, social media and online safety.
