WASHINGTON D.C., USA – Meta Platforms has agreed to sweeping changes to Facebook and Instagram as part of a proposed settlement with nearly all US states over allegations that its platforms were designed to keep children and teenagers hooked.
The agreement, announced on Wednesday, August 26, 2026, could require Meta to pay up to $17.1 billion, making it one of the largest state consumer-protection settlements involving a technology company. The broader potential value could get to $18 billion, depending on additional claims and conditions attached to the deal.
The settlement follows a lawsuit in which state attorneys general accused Meta of deliberately designing Instagram and Facebook features that encouraged addictive use, exposing young users to harmful content and misleading the public about the risks.
Meta has denied wrongdoing but agreed to introduce significant restrictions on how minors use its platforms.
One of the biggest changes will affect how long teenagers can use Facebook and Instagram.
Under the proposed settlement, Meta will impose a two-hour daily usage limit on teenage users by default. Parents will have the ability to override the restriction.
The company will also block access to Facebook and Instagram between midnight and 6 a.m. for teenagers unless a verified parent allows otherwise.
The measures aim to address concerns that young users spend excessive amounts of time on social media, particularly late at night. Meta will also introduce additional warnings to remind teenagers about how long they have been using its platforms.
The proposed settlement will also change how Meta communicates with teenage users during school hours. Push notifications will generally be disabled between 8 a.m. and 3 p.m., helping reduce interruptions during school hours.
Meta will also hide like counts on posts by teenagers by default, while introducing additional restrictions around content that could be inappropriate or harmful to young users.
The company has also agreed to strengthen measures designed to prevent children from accessing age-restricted content.
Another major component of the settlement involves determining the ages of users. Meta will introduce stronger age-assurance technology to identify teenagers and prevent children under 13 from accessing its platforms. The company will use technology and other verification methods to determine which users should be subject to the new restrictions.
The move addresses one of the central concerns raised by regulators: whether social media companies can reliably determine the ages of their users and enforce protections for minors.
The proposed agreement could require Meta to pay billions of dollars over the next decade. New York Attorney General Letitia James said the multistate agreement could provide up to $17.1 billion and described it as a landmark action against the technology industry. New York could receive up to $1.15 billion, with the money intended for education and services supporting young people affected by unhealthy social media use.
The settlement involves almost all US states and several territories. Florida and New Mexico are not part of the agreement, having pursued separate legal action against Meta.
The states had initially sought dramatically higher penalties. Before the trial began, potential penalties sought by the states were reported to have reached as much as $1.4 trillion.
Despite accepting the proposed changes, Meta has not admitted that it intentionally harmed children. The company has maintained that parents play an important role in managing how their children use social media and has previously pointed to parental controls and other safety tools available on its platforms.
Meta’s chief legal officer C.J. Mahoney said the agreement would give parents greater control over their children’s social media use.
“The framework we’ve negotiated will empower parents to easily manage how their children access our platforms.”
Mahoney also warned that the effectiveness of the agreement would depend on other major social media companies adopting comparable restrictions.
“Its success depends on all other social media platforms following Meta’s lead.”
Meta has consequently urged competitors including TikTok and YouTube to introduce similar protections.
Part of the settlement becomes stricter if rival platforms adopt comparable restrictions. If companies including TikTok and YouTube agree to similar measures, Meta could face an additional payment of several billion dollars, while its restrictions on teenage users could also become tougher.
The proposed arrangement therefore puts pressure on the wider social media industry to reconsider how its platforms serve young users.
California Attorney General Rob Bonta described the agreement as a major achievement after years of litigation.
“This is major breakthrough, a milestone moment, a watershed moment.”
Bonta said the settlement would allow states to secure changes without spending years pursuing trials and appeals.
Although regulators have welcomed the agreement, child-safety advocates have warned that the settlement does not resolve every concern surrounding social media.
The agreement does not force Meta to abandon personalised recommendations or targeted advertising, two important components of its business model.
Former Meta employee and whistleblower Arturo Béjar, who testified during the case, also cautioned against treating the settlement as proof that the platforms are now completely safe for children.
“It is not an all clear to say the product is safe.”
The settlement also does not end every legal challenge facing Meta. The company continues to face lawsuits from individuals, school districts and other government authorities over alleged harms linked to its platforms.
The proposed settlement must receive court approval before the agreed changes become legally binding.
