Meta reaches multi-billion dollar settlement over child safety on social media

On August 26, 2026, Meta reached a landmark out-of-court settlement with approximately 40 U.S. states to resolve lawsuits alleging that Facebook and Instagram were designed to be addictive for minors. The tech giant agreed to pay up to $18 billion to settle the claims, which accused the company of misleading users about safety and illegally collecting children's personal data without parental consent. The agreement was reached during a federal trial in California, preventing a potentially longer and more costly legal battle.

As part of the settlement, Meta committed to structural platform changes, including a default daily limit of two hours for teen users, with additional restrictions on nighttime access and notifications. The company did not admit any wrongdoing. These measures currently apply only to teenagers within the states involved in the agreement and remain subject to federal court approval. The case has sparked global calls for stricter oversight, with the European Commission and the UN pushing for similar protective standards for children worldwide.