Meta and a coalition of state attorneys general reached a proposed settlement Wednesday in a federal lawsuit accusing the company of designing Facebook and Instagram to be addictive for young users. The agreement requires Meta to pay up to $17 billion over a 10 years and implement various changes to its social media platforms intended to protect minors. The settlement, announced by California Attorney General Rob Bonta (D), resolves claims brought by 51 states and jurisdictions.
The agreement follows a 2023 lawsuit filed by California and 28 other states, which alleged Meta implemented features encouraging "excessive use" in children while misleading the public about mental and physical health risks. The suit also accused the company of violating the Children’s Online Privacy Protection Act (COPPA) by collecting data from users under 13 without parental consent. While Meta denied the allegations in court, the settlement was reached during the second week of a trial that began in Oakland, California, where states had initially sought $1.4 trillion in penalties.
Under the terms of the settlement, Meta will introduce a default daily time limit of two hours for users under 18 and a block on the apps between midnight and 6 a.m., both of which can only be removed by a parent. The company will also block notifications during school hours and overnight, ban cosmetic surgery filters for minors, and hide the number of "likes" on posts made by young users. Additionally, minors will be given an option for a "non-personalized feed" that is not managed by an algorithm. To ensure compliance, an independent auditor will be appointed with access to Meta’s resources and the authority to communicate with state attorneys general.
Students will see a shift in their daily digital experience as notifications are silenced during school hours and algorithms are restricted from targeting them with personalized content. The ban on cosmetic surgery filters and the removal of "like" counts are intended to change the social environment of the platforms for minors. These changes are scheduled to be implemented within months, according to Attorney General Bonta. The settlement also subjects Meta to an injunction prohibiting the company from making deceptive statements regarding its safety features, creating a new legal standard for how the company communicates its risks to the public.
The agreement sets a precedent for how state governments may use consumer protection and privacy laws to force operational changes at major technology firms. Similar to the tobacco settlements of the 1990s, this case could influence future policy and litigation involving other social media platforms; for instance, Pennsylvania’s attorney general recently filed a separate lawsuit against Snapchat regarding child safety. The proposed settlement currently awaits final approval from Judge Yvonne Gonzalez Rogers of the U.S. District Court for the Northern District of California. Following approval, the independent auditor will begin monitoring Meta's compliance with the new safety and transparency requirements.