Meta, the parent company of Facebook and Instagram, has reached a landmark agreement with a bipartisan coalition of U.S. state attorneys general that could cost the company up to $17.1 billion over allegations involving the impact of its platforms on young users.
The agreement follows allegations that Meta deliberately designed features on Facebook and Instagram to encourage prolonged and compulsive use among children and teenagers and failed to adequately address the potential risks associated with those features.
Meta has denied wrongdoing, but agreed to major changes to how teenagers use its platforms as part of the settlement. The agreement still requires judicial approval before the new measures become effective.
The deal involves attorneys general from 52 U.S. states, territories and the District of Columbia, according to Meta. The financial settlement is expected to be distributed over a 10-year period, with approximately $12.7 billion allocated to participating states under the initial terms. Another approximately $5.3 billion is conditional on TikTok and YouTube adopting specified measures and making matching financial commitments.
One of the most significant changes will be a two-hour daily time limit for users under 18 across Facebook and Instagram. Time spent on both platforms will count toward the combined limit. Teenagers will only be able to disable the restriction with parental permission.
Meta will also introduce a default Night Mode, preventing teenagers from accessing much of Facebook and Instagram between midnight and 6 a.m. Direct messaging will remain available during the restricted periods so young users can continue communicating with friends and family.
During school hours, from 8 a.m. to 3 p.m., notifications will be muted by default. Direct messages and important security or safety alerts will remain available. Teenagers will also receive prompts after every 15 minutes of continuous screen time to encourage more intentional use.
The agreement also gives young users and their parents greater control over the way content is presented. Teenagers will be able to choose a non-personalised, chronological feed rather than one driven by Meta’s recommendation systems. Parents will also have the ability to require this setting for their children.
Other measures include the ability to disable autoplay, hiding like and reaction counts by default for teenagers, stronger restrictions on age-inappropriate content, and tighter controls against potentially suspicious adults contacting young users.
Meta also agreed to strengthen its age-assurance technology to identify users who may be under 13 and teenagers who may be between 13 and 17, even when an account provides an adult date of birth.
The company will further strengthen parental supervision tools, including additional information about teenagers’ usage and certain changes they make to protective settings.
The settlement is significant because it could influence how major social media platforms approach youth safety in the United States. Meta has already called on TikTok and YouTube to adopt similar protections, arguing that teenagers can simply move to other platforms if restrictions are imposed on only one service.
The agreement also establishes an independent research foundation focused on teen wellbeing and provides for independent auditing of Meta’s compliance with the settlement.
Although Meta’s business model and personalised advertising system remain largely intact, the agreement represents one of the most substantial changes yet to the way Facebook and Instagram operate for teenagers. Reuters reported that the settlement resolves a major legal challenge that had threatened Meta with a potentially damaging trial.
If approved by the courts, the measures could reshape the social-media experience for millions of young people across the United States.
