Meta agrees to pay up to $17.1 billion to settle states' child social-media harm claims

Summary

Meta Platforms reached a landmark settlement on August 26, 2026 with a bipartisan coalition of U.S. attorneys general resolving litigation alleging that Facebook and Instagram were deliberately designed with addictive and harmful features targeting children and teenagers. The litigation was originally brought in 2023. The states alleged that Meta designed algorithms and engagement features to maximize the amount of time young users spent on Facebook and Instagram, despite knowledge of potential harms to children and teenagers. According to the New York Attorney General, the states alleged that Meta used features including infinite scrolling, repeated notifications and algorithmic recommendations that made it harder for young users to disengage from the platforms. The litigation also alleged that Meta falsely represented its platforms and features as safe for young users. The states further alleged that Meta violated the federal Children's Online Privacy Protection Act (COPPA) by collecting personal information from children under the age of 13 without obtaining required parental consent. Under the settlement announced on August 26, 2026, Meta will pay at least $12.1 billion to participating states. The amount can increase to as much as $17.1 billion if other major social-media companies enter comparable settlements. New York alone is expected to receive at least $819 million and potentially as much as $1.15 billion. The settlement also requires extensive changes to Facebook and Instagram for users under 18. Meta must take steps to verify users' ages and identify minors using its services. Users under 18 will generally be limited to two hours per day across Facebook and Instagram, excluding certain messaging functions. Minors will be prevented from accessing the platforms between midnight and 6 a.m., and Meta must restrict push notifications during nighttime and school hours. After 60 and 90 minutes of cumulative daily use, Meta must pause content and provide reminders encouraging young users to stop using the platforms. Additional reminders must appear during continuous sessions lasting more than 15 minutes. Young users will also have the option of non-algorithmic chronological feeds showing content from accounts they follow. Parents using Meta's supervision tools will be able to make non-algorithmic feeds the default for their children. The settlement also restricts social-comparison and engagement features. Users under 18 will be prevented from seeing certain likes and reactions and will receive additional tools for reporting inappropriate, offensive or illegal content. Parents must explicitly approve attempts by minors to disable certain time and content restrictions. The settlement provides for an initial five-year period of restrictions. If other major social-media companies subsequently reach comparable settlements, stronger restrictions may apply for an additional ten-year period, including tighter nighttime restrictions and potentially limiting minors to 60 minutes per Meta platform per day. The settlement was reached while Meta was facing a federal trial in California involving claims brought by numerous states. Meta has denied wrongdoing. The settlement is subject to court approval. Primary sources: New York Attorney General — Attorney General James Secures Up to $17.1 Billion and Groundbreaking Reforms from Meta to Protect Children on Social Media: https://ag.ny.gov/press-release/2026/attorney-general-james-secures-171-billion-and-groundbreaking-reforms-meta New York Attorney General — Statement on Start of Trial Against Meta: https://ag.ny.gov/press-release/2026/attorney-general-james-releases-statement-start-trial-against-meta Reuters / Yahoo Finance — Meta settles with US states over social media harms: https://finance.yahoo.com/news/meta-settles-us-states-over-130318028.html