Meta Reaches $17 Billion Settlement Over Teen Social Media Addiction Claims

Meta has agreed to pay $17 billion and introduce stronger child-safety measures on Facebook and Instagram under a landmark settlement that ends a major legal battle over the platforms’ impact on young people.

The proposed deal, announced Wednesday, settles claims brought by 47 US states and comes as Meta faces growing scrutiny over allegations that it deliberately designed features to keep children and teenagers engaged while concealing potential mental-health risks.

Under the agreement, Meta will impose a daily “hard cap” on usage, introduce pauses for young users and disable push notifications during weekday school hours. The company will also strengthen age-assurance systems and introduce age-appropriate content controls targeting bullying, eating disorders and self-harm material. The settlement also includes stronger parental controls and restrictions on social-comparison features, including “like” counts. An independent auditor will monitor Meta’s implementation and assess the effectiveness of the measures.

California is expected to receive at least $1.5 billion over 10 years, while New Jersey could receive $525 million, Massachusetts $366 million and Virginia $353 million. The funds are expected to support youth mental-health programmes, after-school and summer activities and digital-literacy initiatives.

Meta said the agreement builds on its existing efforts to protect teenagers and urged rivals TikTok and YouTube to adopt similar measures. The company has valued the overall settlement at about $18 billion, including a proposed award for Texas.

The settlement ends an ongoing federal case involving California, Colorado, Kentucky and New Jersey. The trial began last week in Oakland, with Instagram chief Adam Mosseri testifying before the agreement was reached. CEO Mark Zuckerberg had been expected to testify.

The lawsuits followed investigations and reports, including a 2021 Wall Street Journal investigation, that raised concerns about Instagram’s effects on teenage mental health and body image. While Meta has introduced dedicated teen accounts and other safeguards, critics argue the measures have not gone far enough. The settlement still requires court approval, and Meta continues to face lawsuits from individuals and school districts across the US.