Meta has agreed to pay up to $18 billion to settle a multi-state lawsuit accusing it of intentionally creating addictive social media features that harm young users and then lying about the risks. The settlement mandates significant changes for Facebook and Instagram, including age verification improvements, time limits on usage, and restrictions on comparison-based features.
The agreement requires Meta to implement a two-hour daily limit with mandatory pauses after 15 minutes of continuous use and again at 60 and 90 minutes to reduce excessive scrolling. It also introduces “night mode,” which blocks access for users under 18 from midnight to 6 a.m., and “school mode,” which disables notifications between 8 a.m. and 3 p.m. for the same group.
Financial terms of the settlement specify that Meta will pay $5.3 billion over ten years to participating states, but only if TikTok and YouTube agree to impose one-hour daily time limits for underage users. If they do not, Meta pays 70% of its settlement amount—approximately $12.9 billion. The agreement covers 48 U.S. states and four territories: the District of Columbia, Puerto Rico, American Samoa, and the Northern Mariana Islands. New Mexico and Florida are excluded.
California Attorney General Rob Bonta stated, “Today, we have secured a settlement with Meta that will make social media less dangerous for our kids and make a world of a difference for children and their families.” Texas Attorney General Ken Paxton added, “This is a historic settlement and a major win for the safety of Texas children.” Georgia Attorney General Chris Carr noted that the agreement “will fundamentally transform how the entire social media industry designs products for kids and teens.”
The lawsuit, which was heard in the U.S. District Court for the Northern District of California, alleged that Meta’s platforms were designed to exploit minors while concealing their addictive nature.