Business & Finance

Meta agrees to pay up to $18 billion to settle state lawsuits over youth social media addiction

The agreement includes nationwide safety features for teens on Facebook and Instagram and cuts short an ongoing federal trial.

Updated Aug 26, 2026 · 15:36 UTC12 reports

The short version

Meta reached a settlement agreement of up to $18 billion with state attorneys general to resolve claims that Facebook and Instagram intentionally addicted young users.
The deal cuts short a federal trial in Oakland, California, overseen by U.S. District Judge Yvonne Gonzalez Rogers.
Meta agreed to introduce mandatory child safety features for minors, including a default two-hour daily time limit, nighttime access blocks, and restrictions on school-hour notifications.
The proposed settlement requires final approval from the presiding federal judge, and Meta denied all allegations of liability or wrongdoing.

Meta agreed to pay up to $18 billion over 10 years to settle lawsuits brought by state attorneys general alleging its platforms harmed youth mental health.[Variety · The Hollywood Reporter]
The settlement cuts short an ongoing federal trial in Oakland, California, during its second week of proceedings.[NPR · CNBC]
As part of the agreement, Meta will implement a default two-hour daily time limit for users under 18 that requires parental permission to lift.[Al Jazeera · The Hollywood Reporter]
Meta agreed to restrict app notifications during typical school hours and establish nighttime usage blocks for minor users.[CBS News · The Hollywood Reporter]
The agreement includes additional features for minors, such as hidden like counts, bans on cosmetic surgery filters, and default non-algorithmic feeds.[NPR · NBC News]
Meta denied all legal claims and liability as part of the proposed agreement.[Deutsche Welle · BBC News · Al Jazeera]

The settlement structure includes a contingent portion of funds tied to whether competing platforms TikTok and YouTube adopt similar safety features and match funding.[Variety]
The final implementation of the agreement remains subject to judicial approval by U.S. District Judge Yvonne Gonzalez Rogers.[NPR · NBC News · Business Insider]