Meta settles social media addiction suit with states for up to $17 billion

Meta, the owner of Facebook and Instagram, settled a landmark social media addiction lawsuit on Wednesday brought by dozens of states, according to a court filing.

Meta agreed to pay up to $17 billion to the states that sued and add child-safety measures to its platforms. The settlement resolves claims filed by 47 states and cuts short a trial that kicked off last week in Oakland, California.

California, Colorado, Kentucky and New Jersey were among the 29 states that first filed suit against Meta in 2023, alleging that the technology giant used its social media platforms to “entice, engage and ultimately ensnare” young internet users. States accused Meta of deliberately designing its platforms to be addictive and of misleading users and the public about the risks.

Meta also violated the Children’s Online Privacy Protection Act (COPPA) by collecting and using the personal data of residents under 13, the states alleged. Meta denied the claims.

In a statement on Wednesday, Meta called the settlement an important step and encouraged other social media players to implement safety measures to protect youth. 

“We just announced an agreement with a bipartisan group of 52 Attorneys General across U.S. states, territories and the District of Columbia to set a new industry standard, building on our longstanding efforts to empower parents and support teens,” a Meta spokesperson said in an email. “While this is an important step, these protections will only be truly effective if our peers-TikTok and YouTube-put the same measures in place.”

The $17 billion settlement, which remains subject to court approval, amounts to a fraction of Meta’s 2025 revenue of $201 billion.

Will new safeguards help?

Meta will put in place new child safety measures under the settlement, including a two-hour daily time limit for teens; a restriction barring minors from accessing Facebook and Instagram at night; and muted push notifications during school hours. 

Meta will also enact changes to better verify the ages of its users who are under 18 and implement stronger, more user-friendly parental controls and limits on social-comparison features, such as “like” counts. 

Rob Bonta, the attorney general of California, where Meta is based, said the settlement will force the company to overhaul its approach to designing and operating social media. 

“Meta has agreed to make massive transformations that will reduce the risk of harm from its platforms — and will do it within months,” he said in a statement. “We are talking about time limits, stopping notifications during school, a block on the app during critical overnight hours, bans on plastic surgery filters, and so much more.”

As tech companies have faced growing pressure about the impact of social media in recent years, Meta has added a number of safety features to Instagram, including separate accounts for teenagers with stronger protections around messaging and privacy, along with content restrictions.

But some child safety experts and former Meta employees contend that such features are largely ineffective.

Arturo Béjar, a former Meta engineering director, said during his testimony in the trial last week that the company designed its social media platforms to keep people engaged even if it harmed their mental health.

“If you step away from the product, they are not going to make any money,” he said.

The financial settlement will help states provide mental health services for young people and educate the public on the potential harm of social media, according to New York Attorney General Letitia James.

“With significant new resources for our communities and comprehensive restrictions on Meta’s platforms for young people, we are taking a major step towards breaking the cycle of social media addiction,” she said in a statement.