Meta has agreed to pay $17 billion and implement enhanced child-safety measures across its Facebook and Instagram platforms to resolve a major lawsuit brought by 47 U.S. states, announcing the settlement on Wednesday. The agreement, one of the largest in state consumer protection history, includes provisions such as daily time limits, age verification protocols, and stronger parental controls aimed at protecting minors from addictive features and harmful online content.
The settlement resolves claims related to allegations that Meta deliberately designed its platforms to addict children and contributed to a worsening youth mental health crisis. Key components of the deal include disabling push notifications during school hours, introducing robust age-appropriate content filters, and reducing social comparison mechanisms like public “like” counts.
“For years, Meta intentionally deceived the public about the addictive and harmful design features that have impacted youth mental health,” said Virginia Attorney General Jay Jones. “This settlement will put an end to these dangerous practices and deliver meaningful relief to protect children from online harm.”
While Meta did not respond to requests for comment, analysts noted that the payout represents a small fraction of the company’s $201 billion revenue forecast for 2025. The resolution comes just before a landmark federal trial in Oakland, California, which was set to hear testimonies from executives including CEO Mark Zuckerberg and Instagram head Adam Mosseri.
During preliminary hearings, former Meta engineering director Arturo Béjar testified that the company prioritized user engagement and profit margins over the mental well-being of younger users. Internal documents reportedly revealed concerns about Instagram’s impact on teen girls’ body image and self-esteem dating back to 2021, following investigative reports by The Wall Street Journal.
The settlement affects multiple states involved in the litigation, including California, Colorado, Kentucky, and New Jersey. Additional lawsuits were filed separately by attorneys general in nine other states. Despite implementing various safety features over recent years—including restricted teen accounts and improved privacy settings—critics argue these efforts remain insufficient.
As part of the agreement, Meta will also enhance its parental oversight tools and further restrict access to potentially harmful content related to eating disorders and self-harm.