Meta to pay up to $16.7 billion to settle US state lawsuit over teen addiction
The settlement, filed in federal court in California, mandates strict usage caps for under-18s and ties a portion of the payout to similar measures by TikTok and YouTube.
Meta has agreed to a settlement with a coalition of 47 US states to resolve allegations that its social media platforms were designed to hook young users and harm their mental health. The agreement, filed in federal court in California, involves a financial payout of up to $16.7 billion over 10 years and mandates specific usage restrictions for users under 18.
The core of the institutional reform is a "hard cap" limiting daily use across Meta platforms to two hours for those under 18, a restriction that parents can lift. Additionally, access will be suspended between midnight and 6 a.m. A feature dubbed "School Mode" will mute notifications by default between 8 a.m. and 3 p.m., with exceptions only for direct messages and security alerts.
The financial structure of the settlement is split, with approximately 70% of the payment going to the participating states. The remaining 30% is contingent on competitors TikTok and YouTube implementing similar limits and matching the payment amount. If these industry peers adopt the framework, Meta will reduce the daily limit to one hour per app and expand its "Night Mode" to 10 p.m. to 7 a.m.
California Attorney General Rob Bonta described the agreement as "real change, real transparency, and real enforceable protections for children." Virginia Attorney General Jay Jones argued that Meta had intentionally deceived the public about addictive design features, stating the settlement would end dangerous practices.
Meta has consistently denied the allegations, noting that the filing does not amount to an admission of liability. The company has called on TikTok and YouTube to adopt the same framework to create an industry-wide solution, arguing that teens move fluidly across multiple apps.
The agreement also requires Meta to offer a non-personalised feed as the default option for under-18s and to respond to 90% of teen reports on potentially harmful content within six hours. The settlement still requires court approval.
