Meta Settles Child Safety Lawsuit With States for Up to $18 Billion

Meta has agreed to pay up to $18 billion to settle claims brought by 29 U.S. states alleging that Facebook and Instagram failed to protect children and teens on their platforms adequately.

The lawsuit accused Meta of designing its social media services in ways that encouraged excessive use among young users while knowing about potential harms. The states also alleged that the company collected data from children without proper parental knowledge, violating the Children’s Online Privacy Protection Act (COPPA).

Meta is not admitting wrongdoing as part of the settlement. The agreement allows the company to avoid proceeding with a jury trial on the claims.

Meta agrees to new teen safety measures

As part of the settlement, Meta said it will implement a series of protections for teen users across Facebook and Instagram. The company developed the framework with 52 state attorneys general and said the measures will remain in place for 10 years, pending judicial approval.

The protections include a default two-hour daily usage limit across Facebook and Instagram, with alerts at 60 and 90 minutes and additional prompts designed to encourage intentional use.

Meta will also introduce default restrictions during certain hours through features called “Night Mode” and “School Mode.” Teen accounts will be blocked from Meta apps between midnight and 6 a.m., while notifications will be muted during school hours from 8 a.m. to 3 p.m.

The company will also hide likes and reaction counts from teens, restrict certain extreme makeup filters, and continue investing in age-assurance technology to identify accounts that may belong to children under 13 or to teens using incorrect adult birth dates.

Settlement includes conditions for YouTube and TikTok

Meta said it will strengthen existing privacy settings for teen accounts and improve protections against unwanted interactions from adults. The company also plans to expand parental controls and improve response times for reports of harmful content from teen users.

Direct messages will not be included, i.e., usage limits or muted notification periods, as Meta said messaging is important for helping teens connect with friends and family.

The settlement will be distributed to states over 10 years. About 30% of the total amount, roughly $5.3 billion, depends on whether YouTube and TikTok adopt similar protections, including daily time limits, Night Mode, and age verification measures.

Meta Chief Legal Officer C.J. Mahoney called for industry-wide adoption of the framework, saying that teens use multiple platforms and broader protections are needed across social networks.

Meta said it expects to record a $10 billion legal expense in the third quarter, which will affect the company’s expenses and profit. The settlement news, however, was followed by an increase in Meta’s stock price.