Meta has agreed to pay up to $16.7 billion to settle claims from dozens of states that Facebook and Instagram harmed children and were deliberately designed to keep young users hooked.
The landmark agreement resolves claims brought by 47 states and cuts short a federal trial that began last week in Oakland, California. Judge Yvonne Gonzalez Rogers approved the settlement Wednesday, according to court documents cited by CBS News.
States accused Meta of using features on Facebook and Instagram to “entice, engage and ultimately ensnare” young users. They also alleged the company misled the public about the risks associated with its platforms. Meta denied the allegations.
The states also accused Meta of violating the Children’s Online Privacy Protection Act by collecting and using personal data from children under 13 without parental consent. Other allegations centered on features such as recommendation algorithms and “like” buttons, which states said were designed to encourage repeated use.
Under the settlement, Meta will introduce new restrictions for teenagers using Facebook and Instagram. Those changes include a two-hour daily time limit and restrictions on minors accessing the apps overnight. Push notifications will also be muted during school hours.
Meta must also strengthen age-verification measures and parental controls. The company will place additional limits on social-comparison features, including “like” counts, and restrict certain filters for young users.
An independent auditor will monitor Meta’s compliance. The settlement also bars the company from making false or misleading statements about the safety features it provides.
The agreement does not require changes to Meta’s recommendation algorithms. Critics have argued that those systems are a central part of the problem because they are designed to keep users engaged with content for longer periods.
Meta is expected to pay at least $12.1 billion over the next 10 years under the multistate agreement. Another $5 billion would be paid if other major social media companies, including TikTok and YouTube, reach similar settlements and adopt comparable protections.
Meta also reached a separate agreement with Texas, which was not part of the multistate settlement. A company spokesperson told CBS News that the Texas deal brings Meta’s total payout to roughly $18 billion.
Meta said the new protections would be more effective if other platforms adopted the same standards. The company called on TikTok and YouTube to introduce similar measures for younger users.
The settlement follows years of growing scrutiny over how social media affects children and teenagers. Former Meta engineering director Arturo Béjar testified during the trial that the company designed its platforms to keep people engaged even when prolonged use could harm their mental health.
States are expected to use some of the settlement money for youth mental health services and public education about the potential harms associated with social media use.