The proposed agreement would end a landmark trial over allegations that Facebook and Instagram were designed in ways that harmed young users, while requiring new limits and safeguards for teens.
Meta has agreed to pay up to $18 billion to resolve a sweeping lawsuit brought by U.S. states and territories alleging that Facebook and Instagram were designed to keep children and teenagers using the platforms despite known risks to their well-being.
The proposed settlement, announced Wednesday as a California trial was underway, would require Meta to make new child-safety changes across its platforms. The agreement still requires court approval for the multistate case.
State attorneys general alleged that Meta used addictive product features, misled users and families about the safety of its services, and improperly collected data from children under 13. Meta denied wrongdoing in reaching the agreement.
The financial package includes a multistate settlement valued at about $17.1 billion, with the total rising to as much as $18 billion when a separate Texas resolution is included. Some payments and terms are tied to whether other major social-media platforms adopt comparable protections.
The proposed measures include daily usage limits for users under 18, overnight restrictions, fewer notifications during school hours, expanded parental controls and stronger systems for assessing users’ ages. The agreement would also require greater safeguards around content involving bullying, eating disorders, suicide and self-harm.
The case grew out of a 2023 action initially filed by 29 state attorneys general. It became one of the most consequential legal tests of whether social-media companies can be held responsible for alleged harms linked to the design of their products, rather than solely to content posted by users.
For Meta, the deal avoids a final trial verdict in the multistate litigation but establishes binding commitments that could influence the broader push for online child-safety rules. The settlement does not amount to a finding that Meta caused the harms alleged by the states.
