Meta agrees to up to 17.1 billion settlement with US states over youth addiction claims on Facebook, Instagram

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Meta agrees to up to 17.1 billion settlement with US states over youth addiction claims on Facebook, Instagram
Meta faces landmark trial as 29 US states accuse platforms of addicting youth
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Meta Platforms agreed on Wednesday to pay up to $17.1 billion to settle claims by 47 U.S. states, the District of Columbia, Puerto Rico, American Samoa and the Northern Mariana Islands that Facebook and Instagram were designed to addict children and misled the public about platform safety, according to court filings and statements from attorneys general .
The settlement, subject to court approval, resolves allegations that Meta exposed younger users to harm, violated children’s privacy protections, and collected data from users under 13. Meta has denied wrongdoing .
Under the agreement, Meta must impose daily usage limits of two hours for users under 18, unless parental controls override the restriction. Overnight access will be blocked, and notifications will be limited during school hours and evenings. The company will also strengthen age-verification measures, hide likes and reaction counts for under-18 users, and offer a non-algorithmic, chronological feed option .
New York Attorney General Letitia James said her state could receive up to $1.15 billion, with funds earmarked for education, mental health services, and programs addressing unhealthy social media use among young people . California Attorney General Rob Bonta stated that Meta must implement “massive transformations,” including time limits, overnight blocks, and bans on plastic surgery filters .
Meta’s chief legal officer, CJ Mahoney, called for industry-wide adoption of the new framework, urging TikTok and YouTube to implement similar measures. “Because teens move fluidly across dozens of apps, we need an industry-wide solution,” Mahoney said in a release . Indiana Attorney General Todd Rokita said the settlement aims to stop platforms from “exploiting the developing brains of our kids” and vowed to push for similar protections from other companies, including Discord, Roblox, Snapchat, TikTok, and YouTube .
The financial payments will be made over several years, with individual jurisdictions receiving varying allocations. Meta expects to take a $10 billion charge in the current quarter for the settlement . U.S. District Judge Yvonne Gonzalez Rogers suspended the trial and indicated she is “inclined” to approve the agreement but needs time to review it .
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