Meta Platforms has agreed to pay up to $16.68 billion to settle claims by 29 US states that Facebook and Instagram were designed to keep children and teenagers excessively engaged and failed to adequately protect them.
The agreement, announced on Wednesday, August 26, 2026, ends a closely watched federal trial in Oakland, California. Meta denied wrongdoing and did not admit liability.
The states alleged that Meta deliberately designed features to maximize engagement among young users and improperly collected personal information from children under 13.
Under the settlement, Facebook and Instagram will impose a default two-hour daily limit on users under 18, with parents able to override it. Teenagers will also face default restrictions between midnight and 6am, while notifications will be limited during school and overnight hours.
Meta will strengthen age checks and parental controls, restrict access to age-sensitive content and modify features such as certain cosmetic filters and engagement tools.
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The deal also resolves separate privacy claims by California, Illinois, New Mexico and Washington, DC, including allegations linked to the Cambridge Analytica scandal. The four jurisdictions will receive $459.3 million.
Meta said the wider agreement involved a bipartisan group of 52 attorneys general and urged TikTok and YouTube to adopt similar safeguards.
The settlement follows a March 24, 2026 New Mexico jury verdict ordering Meta to pay $375 million after finding it liable under state consumer-protection law in a case involving child safety and alleged misrepresentation of platform risks. Meta disputed the verdict and said it would appeal.
Meta, YouTube, TikTok owner ByteDance and Snap face thousands of additional lawsuits alleging that their platforms were designed to maximize engagement and contributed to problems including anxiety, depression and body-image concerns. The companies deny the allegations.
The settlement adds to mounting pressure on social media companies to adopt stronger, enforceable protections for minors as governments and courts intensify scrutiny of children’s online safety.