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Meta settles a social media addiction lawsuit

Meta Platforms has agreed to pay up to $18 billion over the next decade to settle lawsuits brought by nearly all U.S. states over allegations that Facebook and Instagram were designed to keep children and teenagers hooked. The agreement also requires Meta to introduce significant changes to how young users access and use its platforms.

The settlement

Under the settlement, Meta will guarantee around $12.7 billion in payments, with an additional $5 billion dependent on whether other social media companies, including Snap, TikTok and YouTube, introduce similar protections for young users. California could receive around $2.2 billion, while New York could receive approximately $1.1 billion.

The agreement includes new restrictions for teenagers on Facebook and Instagram. These include a two-hour daily usage limit, restrictions on overnight access between midnight and 6 a.m. without parental consent, and reduced notifications during school hours. Meta will also strengthen age verification and introduce additional measures to limit children's access to age-restricted content.

The lawsuit

The lawsuits accused Meta of deliberately designing its platforms to encourage addictive use among young people, misleading the public about potential risks and violating children's privacy laws. Meta has denied wrongdoing and said it is committed to providing safer experiences for teenagers.

The settlement also resolves separate privacy claims linked to the Cambridge Analytica scandal. Meta will pay an additional $459 million over allegations that personal data belonging to millions of Facebook users was collected without authorization.

The agreement brings an end to a federal trial that began in August and could influence thousands of other lawsuits against social media companies over alleged harm to young users. Some states, including Florida and New Mexico, did not join the settlement and plan to continue pursuing their own cases.

Source: https://www.reuters.com/business/meta-reaches-18-billion-settlements-over-childrens-social-media-addiction-2026-08-26/