Meta Settles States' Lawsuit With $18 Billion, Teen Restrictions

Meta Platforms has agreed to pay up to $18 billion over the next decade and implement sweeping new restrictions on how teenagers use Facebook and Instagram, settling a landmark lawsuit brought by nearly all U.S. states. The agreement, announced on August 26, 2026, resolves claims that the company deliberately designed its social media platforms to be addictive to children and misled the public about their safety. The settlement ends a federal trial in Oakland, California, that had begun on August 18.

Under the terms of the deal, Meta will impose a default two-hour daily time limit for users under 18 across both Facebook and Instagram. The platforms will also block teenage users from midnight to 6 a.m. unless parental consent is provided. Push notifications will be disabled during school hours, from 8 a.m. to 3 p.m., and between 10 p.m. and 7 a.m. The company will also hide like and reaction counts for teen users by default and block filters that mimic cosmetic surgery. An independent auditor will oversee compliance with these measures for at least five years.

The financial component of the settlement includes guaranteed payments of approximately $12.7 billion to 47 states,...