Meta Settles Teen Safety Case for Up to $18 Billion, Imposes New Restrictions
Meta has agreed to pay a coalition of US states as much as $18 billion and impose sweeping new limits on how teenagers use Facebook and Instagram, according to a court filing on Wednesday that ends a landmark trial in California.
The settlement, which a federal judge quickly approved, resolves claims by 29 states that Meta deliberately engineered its platforms to hook young users, misled the public about the risks, and unlawfully collected data from children under 13.
Total Payout and Scope
51 states and territories, plus Washington, DC, initially settled with Meta. Texas reached a separate agreement, which increased the total payout to around $18 billion.
California, the largest recipient, is due $1.5 billion to $2.1 billion over the decade, followed by New York with up to $1.13 billion.
The settlement payment schedule provides for 10 annual installments.
Sweeping New Safeguards for Teens
The changes to how young people use Meta’s apps go further than anything the company has accepted before, following years of criticism from parents and experts over the effects of social media on children.
Key provisions include:
| Safeguard | Detail |
|---|---|
| Nighttime Block | Teen accounts locked out of Facebook and Instagram between midnight and 6:00 AM local time |
| Daily Time Cap | Default limit of 2 hours of cumulative daily use across Meta’s apps |
| Exemptions | Time spent messaging or watching long-form video does not count toward the limit |
Meta Calls on Industry to Follow
Meta framed the deal as a template for the rest of the industry and pressed its competitors to match it.
“Because teens move fluidly across dozens of apps, we need an industry-wide solution,” said C.J. Mahoney, Meta’s chief legal officer.
“We therefore call on our industry peers, TikTok and YouTube, to implement this new framework, right away.”
Should competing platforms adopt equivalent commitments, the overnight lockout would widen to 10 PM through 7 AM and the daily allowance would fall to 60 minutes per app, capped at two hours in total.
Independent Oversight
Compliance will be policed for 10 years by an independent auditor chosen jointly by Meta and the states and paid for by the company.
The agreement applies only to teenagers in the signatory states, with no effect internationally.
No Admission of Liability
The filing states that the agreement does not amount to an admission of liability or wrongdoing by Meta, which has consistently denied the allegations.
Trial Testimony and Background
The settlement ends the trial in its second week. Instagram boss Adam Mosseri took the stand on Tuesday and admitted he touted newly launched safety tools for teens without disclosing low adoption rates from early testing several years ago.
Other witnesses testified that Meta knew the tools were not effective and even that they were “designed to fail.”
Meta Founder and Chief Executive Mark Zuckerberg had been expected to testify as well.
Expert Reaction
James Grimmelmann, a professor of digital and information law at Cornell University, commented:
“Meta is now facing the same ugly truth as the makers of Agent Orange, asbestos, and other dangerous products. If you’re liable at all, the lawsuits will keep coming and coming.”
“Settling with the states is a way to try to limit Meta’s overall exposure and get some of the biggest and most dangerous plaintiffs to go away,” he said.
What This Means Moving Forward
Anger over the impact of Instagram, Facebook, and rival apps like Snapchat and TikTok has driven the spread of age limits and school phone bans around the world.
Meta still faces thousands of additional personal injury claims and litigation from school districts.
This article was updated on August 27, 2026, with details of the settlement, court testimony, and expert reaction.