Meta to pay $18B settlement over teen harms
Meta has agreed to a proposed settlement of up to $18 billion with a bipartisan group of 52 attorneys general over allegations that its social media platforms were designed to addict children. The case centers on claims that Facebook and Instagram were intentionally built to encourage compulsive use among teenagers. The settlement, which requires court approval, is the result of a lawsuit filed in 2023 by California Attorney General Rob Bonta and other state officials. Meta will also face ten years of independent auditing to ensure compliance with the new restrictions.
New Rules for Teen Users
If the agreement is approved, Meta will introduce new restrictions for users under 18 on Facebook and Instagram. One of the primary changes is a default daily usage limit of two hours that can only be disabled by parents. The company will also set a default so that teenagers cannot use the apps between midnight and 6 a.m. Most notifications will be silenced during these hours and during school hours, although parents can alter these settings. Some restrictions do not apply to direct messages and certain security or safety alerts.
Other requirements include hiding like and reaction counts for teenagers, banning cosmetic surgery filters, providing a non-personalized feed option, improving parental supervision tools, and adding more age-verification technology to identify and remove users under 13. An independent auditor will monitor Meta’s compliance for ten years, and the company will not be permitted to make false or misleading statements regarding its safety features. Industry-wide acceptance is a stated goal of the deal.
Related: Canonical launches Ubuntu 26.04.1 LTS for Noble Numbat
Financial Breakdown and Legal Costs
The deal establishes an independent research foundation focused on teen well-being and social media use. A separate payment of $5.3 billion will be made only if YouTube and TikTok adopt similar rules, such as daily one-hour limits, nighttime restrictions, and age-assurance requirements, and each of them makes a matching payment. Meta states the agreement is intended to promote industry-wide acceptance so that teenagers get consistent protection across apps they use most.
Meta states that the agreement includes payments of about $18 billion over a period of ten years, with the participating states anticipated to receive approximately $12.7 billion. California is expected to receive between $1.5 billion and $2.1 billion. According to Attorney General Bonta’s office, the proposed settlement earmarks the money for preventing or addressing mental health or other harms to young Californians linked to social media. The Legislature and the Governor will be responsible for making the final decision regarding the spending. Meta anticipates legal expenses of about $10 billion as a result of the agreement in the third quarter of 2026.
The settlement settles the claims without Meta specifying its liability, and this matter relates to child safety and mental health. The deal is still to receive approval from the court and is therefore not final. Parents who want to control the way their teenagers use social media can use the parental control features offered by the various platforms, and anyone who is worried about a young person’s well-being should contact a qualified professional or a reliable individual for support. COPPA governs how companies collect data from children under 13, but enforcement has historically been difficult.
