Business & Finance

Meta agrees to pay up to $18 billion to settle multi-state youth safety trial

The agreement includes a 10-year payout plan and new teen account settings, though Florida rejected the deal to pursue its lawsuit.

Updated Aug 28, 2026 · 11:18 UTC1 reports

The short version

Meta agreed to a settlement worth up to $18 billion with four states to end a trial alleging Facebook and Instagram were designed to addict children.
The agreement cuts short the trial and keeps Meta CEO Mark Zuckerberg from testifying.
Meta will introduce teen account restrictions, including a default two-hour daily limit, though parental overrides and exemptions for messaging and longer videos apply.
Florida refused to join the agreement, with its attorney general stating the state intends to continue its court case against Meta.

Meta agreed to settle a lawsuit with four states for up to $18 billion, avoiding a potential $200 billion demand.[Business Insider]
The settlement is structured over a decade, requiring guaranteed annual installments of about $1.17 billion.[Business Insider]
Roughly 30% of the settlement—more than $5 billion—is contingent on YouTube and TikTok agreeing to comparable payments and feature restrictions.[Business Insider]
New teen safety features include a two-hour default daily cap, chronological feed options, overnight feature blocks, and silenced notifications during school hours.[Business Insider]
The teen account limits exclude direct messaging and videos running 22 minutes or longer, and parents retain the ability to override the restrictions.[Business Insider]
Florida Attorney General James Uthmeier announced that Florida declined the settlement offer and will continue litigating against Meta.[Business Insider]

It remains unknown whether YouTube and TikTok will adopt the restrictions and financial terms necessary to trigger the contingent 30% of Meta's settlement.[Business Insider]