Meta has agreed to a landmark settlement to resolve a massive lawsuit brought by dozens of US states, which accused the tech giant of designing addictive products that harmed young users. The agreement, which could cost the company up to $17 billion over the next decade, mandates significant changes to the user experience on Instagram and Facebook. These modifications, which the company has committed to implementing within months, include the introduction of daily usage limits, restrictions on nighttime access, and the removal of certain filters associated with cosmetic surgery.
The settlement effectively halts a high-stakes jury trial that had only recently commenced in a federal court in Oakland, California. California Attorney General Rob Bonta hailed the deal as a transformative step for digital safety, stating that the agreement would make social media significantly less dangerous for children and their families. While the company denies any wrongdoing as part of the settlement, the legal resolution marks the first time Meta has been compelled to fundamentally alter core features for its general user base in the United States.
The original lawsuit, filed by California and 28 other states, alleged that the $1.36 trillion company deliberately engineered platforms to hook young people, contributing to widespread mental health struggles including depression, anxiety, and suicide. Furthermore, the states claimed that Meta frequently collected data on children younger than 13 without obtaining the required parental consent, violating both state and federal regulations.
Financial terms of the agreement will see the $17 billion distributed among the participating states over a 10-year period, pending final court approval. For instance, California is expected to receive between $1.5 billion and $2.1 billion, while Colorado is slated for approximately $615 million. Colorado Attorney General Phil Weiser emphasized that the relief secured is substantial and exceeds what a court would typically mandate, noting that the primary objective was the protection of minors.
Throughout the proceedings, Meta maintained that the states were pursuing an unreasonable payout. CJ Mahoney, the company’s chief legal officer, argued that the effectiveness of these new safety measures depends on an industry-wide adoption. He called on competitors such as TikTok, Snap, and YouTube to implement a similar framework immediately, noting that because teenagers navigate between various platforms, a unified approach is necessary for meaningful protection.
The trial, which was expected to span several weeks, concluded after only four days of testimony. Jurors had heard from Arturo Béjar, a former Meta safety engineer turned whistleblower, who alleged that the company operated under a “don’t ask, don’t tell” policy regarding child safety. Béjar further testified that CEO Mark Zuckerberg was aware of the potential harms posed by the platforms while publicly promoting them as safe, creating what he described as a misleading impression of the company’s commitment to young users.
Although Zuckerberg was listed as a potential witness, the settlement was reached before he was called to testify. Earlier in the week, Instagram CEO Adam Mosseri faced questioning regarding the company’s transparency. When pressed about the internal data regarding teen usage of safety features, Mosseri dismissed concerns, stating that the company does not publish every individual statistic.
This settlement is part of a broader wave of litigation facing major tech firms. Thousands of similar lawsuits have been filed by school districts, families, and other attorneys general. Earlier this year, Meta and YouTube lost a separate case, resulting in a $6 million judgment for a plaintiff, while other cases involving TikTok and Snap were settled prior to trial. Additionally, Meta was previously ordered to pay nearly $1 billion in a separate lawsuit brought by the attorney general of New Mexico concerning child sexual exploitation on its platforms. The report also notes that stopping notifications during school, a block on the app during critical overnight hours, bans on plastic surgery filters and more, bonta said those changes included time limits. The report also notes that for example, California would receive between $1.5bn and $2.1bn and Colorado will get about $615m. The report also notes that throughout the proceedings, Meta denied all allegations saying states are chasing an “outlandish payout”. The report also notes that “Because teens move fluidly across dozens of apps, we need an industry-wide solution. The report also notes that “As a parent, I’m proud of both the work Meta has done to protect kids historically, and of this new groundbreaking agreement.
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