Meta to Pay Up to $18 Billion in Suit Over Social Media's Harm to Teens

Meta has agreed to a preliminary settlement worth roughly up to $18 billion to resolve claims brought by a bipartisan coalition of 52 state attorneys general. The plaintiffs alleged that Facebook and Instagram were deliberately designed to induce compulsive use among children and teenagers. The agreement still has to be approved by a court.

The suit was filed in 2023 by California Attorney General Rob Bonta together with counterparts from other states. Meta was accused of rolling out features that pushed young users toward compulsive behavior while at the same time misleading families and the public about the risks of its platforms. Separately, the attorneys general alleged the unlawful collection of data on children under 13 — in violation of the federal COPPA law and California's laws against unfair advertising and competition.

What changes for teens

Under the terms of the settlement, Meta is introducing a number of default restrictions for users under 18. Among them is a two-hour daily limit, which can only be turned off with a parent's permission. The apps will be locked from midnight to 6 a.m., and most notifications muted overnight and during school hours. Private messages and some safety alerts are exempt from these rules.

In addition, like and reaction counters will be hidden from teens, “cosmetic” appearance-altering filters will be disabled, a non-personalized feed will be offered, and parental control tools will be strengthened. The company commits to deploying additional age-verification technologies to identify minors and remove children under 13. Compliance with the terms will be monitored by an independent auditor, and Meta is barred from making false claims about its safety features.

The money and a bet on competitors

The payments of roughly $18 billion are spread over ten years. The states will receive about $12.7 billion, of which California is due between $1.5 and $2.1 billion — money that is meant to go toward preventing and remedying harm to young people's mental health.

Curiously, the remaining $5.3 billion will be paid only if YouTube and TikTok adopt similar rules — hourly daily limits, overnight restrictions and age verification — and make their own matching payments. In that case, the limit for teens in Meta's apps would also drop from two hours to one. The company states its goal outright: to set an industry-wide standard so that protections for teens work the same way across the services they use most often.

Most of the new measures are meant to remain in force for at least ten years; the agreement also provides for the creation of an independent research fund dedicated to teen well-being. Meta expects to record the associated legal costs of roughly $10 billion in the third quarter of 2026.

Source: Bleeping Computer