Meta, the digital company behind Facebook and Instagram, has reached a multibillion-dollar settlement with numerous US states over allegations concerning the dangers its social media platforms pose to children and teenagers. Under the agreement, the company will pay the states up to $16.68 billion, according to court documents, while introducing nationwide changes governing how young users access its services.
The settlement allows Meta to avoid a trial in a case brought by 29 states before a federal court in California. The states alleged that Meta had deliberately designed its social networks in ways that could make minors dependent on them. They also accused the company of misleading consumers about the safety of its platforms and unlawfully collecting children’s personal data for use in training artificial intelligence models. Meta rejected the allegations.
Under the agreement, Meta has committed to a series of changes affecting teenage users of its services in the United States. According to US media reports, the measures include limiting daily use of Instagram and Facebook to two hours and restricting access between midnight and 6am. Notifications would also be silenced between 10pm and 7am.
The company would additionally be required to take measures against endless scrolling, while certain filters and the display of likes would be restricted. The agreement also calls for improvements to age-verification systems, reflecting the states’ broader concerns over how effectively social media platforms distinguish between adult and underage users.
The case also brought scrutiny of measures Meta had previously introduced to protect younger users. During the proceedings, Instagram chief Adam Mosseri acknowledged that the company had failed to disclose the introduction of some new safety features. A function introduced in 2021, known as “Take a Break”, was intended to remind users after they had spent a certain amount of time on the app. However, it had reached few teenagers because it was scarcely promoted. Similarly, only a small number of teenagers used the sleep mode introduced in 2023.
The lawsuit was led by California, Colorado, Kentucky and New Jersey on behalf of the 29 participating states. The states had sought restrictions on Meta’s services as well as a penalty of around $200 billion, equivalent to about €173 billion. That demand would have amounted to several thousand dollars for every affected young person in the country.
The proceedings stemmed from the so-called Facebook Files, documents released by former Facebook employee Frances Haugen at the end of 2021. The disclosures highlighted Meta’s awareness of possible harm associated with its platforms for children and teenagers and became a major element in the subsequent legal scrutiny of the company.
The settlement therefore represents a significant shift from the scale of the penalties originally sought by the states, while imposing nationwide restrictions on how young people use Meta’s platforms. For the company, the agreement removes the immediate prospect of a federal trial; for the states, it secures financial compensation alongside mandatory changes to services used by millions of young people.
