Meta reaches multibillion-dollar child safety settlement with states

Meta has agreed to a sweeping settlement with dozens of states that accused the owner of Facebook and Instagram of designing addictive products for children and hiding the risks, a deal that would force major changes to teen accounts and require billions of dollars in payments.

The proposed agreement, announced Wednesday, would resolve a landmark federal child safety case brought by states including California, Colorado, Kentucky and New Jersey on behalf of a broader group of attorneys general. It still requires approval from U.S. District Judge Yvonne Gonzalez Rogers in the Northern District of California.

California Attorney General Rob Bonta’s office said Meta would pay $17 billion in penalties to the states over 10 years. Meta said in a statement that the agreement includes a payment of approximately $18 billion, which can be used to fund youth online safety initiatives and other state priorities. CBS News also reported the settlement at $17 billion.

Meta denies the allegations and any liability, according to a court filing.

The states alleged that Meta designed Facebook and Instagram to be addictive to young users, knew the platforms posed risks and concealed that information from the public. They also accused the company of violating state consumer protection laws and the federal Children’s Online Privacy Protection Act by collecting data about children under 13. Meta’s policy bars children under 13 from using its platforms, though some register with false birth dates.

“Today, we have secured a settlement with Meta that will make social media less dangerous for our kids and make a world of a difference for children and their families,” Bonta said in a statement. “Meta has agreed to make massive transformations that will reduce the risk of harm from its platforms — and will do it within months.”

Under the settlement, teen accounts would default to a two-hour daily limit across Facebook and Instagram. Meta said teens would need parental permission to disable the limit. The agreement also includes nighttime restrictions, with NPR reporting that Bonta’s office described a default block from midnight to 6 a.m. that only a parent could lift.

Meta also agreed to hide the number of likes or reactions on minors’ posts by default, block what it called “extreme makeup filters,” and ban cosmetic surgery image filters for minors, according to the announcements. Teen users would be able to choose a non-algorithmic or non-personalized feed as their default and disable autoplay video. The deal also calls for enhanced age assurance measures to prevent children from accessing the platforms or age-restricted content, along with additional tools for parents and guardians.

Bonta’s office said Meta must hire an independent auditor with broad access to information and the ability to communicate with the attorneys general. The company would also be subject to an injunction prohibiting false, misleading or deceptive statements about its safety features.

Meta chief legal officer C.J. Mahoney said the “framework we’ve negotiated will empower parents to easily manage how their children access our platforms.” He also urged competitors to adopt similar measures. “Because teens move fluidly across dozens of apps, we need an industry-wide solution. We therefore call on our industry peers, TikTok and YouTube, to implement this new framework, right away,” Mahoney said.

The trial began last week in federal court in Oakland, California, and had been expected to run into early October. The settlement came a day after Instagram chief Adam Mosseri testified. NPR reported that states questioned him about the effectiveness of “Take a Break,” a feature meant to nudge young users to close the app, and argued it had limited teen uptake.

The case is one of several lawsuits Meta has faced over similar claims. NBC News reported that Meta said the agreement involves 52 attorneys general nationwide, while Bonta’s office said it resolves the cases and claims of 51 attorneys general.