Meta settles with US states over claims Facebook, Instagram were designed to addict children, mislead users

Meta denied wrongdoing in agreeing to the settlement. The company also agreed to introduce nationwide changes for teenage users of Facebook and Instagram, including daily usage limits and overnight restrictions, according to the court papers.Meta has consistently rejected claims that it deliberately designed its services to harm children. (File Photo)Meta has agreed to a landmark settlement worth up to $16.68 billion to resolve claims from US states that Facebook and Instagram were deliberately designed to keep children hooked, misled users about the safety of its platforms and improperly collected personal data from young users.The agreement, disclosed in court filings, brings an end to a closely watched federal trial involving 29 states and prevents the case from becoming one of the biggest courtroom tests yet of allegations that social media companies have contributed to a youth mental health crisis.Meta denied wrongdoing in agreeing to the settlement. The company also agreed to introduce nationwide changes for teenage users of Facebook and Instagram, including daily usage limits and overnight restrictions, according to the court papers. Meta shares rose 4.4 per cent in pre-market trading following news of the settlement.META AGREES TO NATIONWIDE TEEN SAFETY CHANGESThe settlement goes beyond a financial payout, requiring Meta to make changes to how teenagers use its platforms. Among the measures outlined in court filings are daily limits on usage and nighttime blocks designed to reduce the amount of time young users spend on Facebook and Instagram. The agreement follows years of mounting scrutiny over whether social media platforms use engagement-driven features that encourage children and teenagers to remain online for longer periods. Meta has consistently rejected claims that it deliberately designed its services to harm children. Before the trial, the company argued that it could not have deceived consumers by describing its platforms as addictive because "social media addiction" is not a recognised psychiatric condition.The company has also said it has worked extensively to protect young users on its platforms.US STATES HAD SOUGHT TRILLIONS IN PENALTIES The federal trial centred on claims brought by California, Colorado, Kentucky and New Jersey alleging that Meta violated state consumer protection laws.The case also included claims from 29 states that Meta violated the federal Children's Online Privacy Protection Act by collecting personal information from users it knew were children without notifying or obtaining consent from their parents.The states further alleged that the company used children's data to train machine-learning and generative artificial intelligence models.Before the trial, Meta said the four states were seeking as much as $1.4 trillion in penalties. The states later indicated that their potential demand would be closer to $200 billion. They were also seeking additional damages and court orders requiring major changes to Meta's platforms, including restrictions on children's ability to create accounts.The settlement avoids what could have been a prolonged fight over those claims and potential penalties.SOCIAL MEDIA COMPANIES FACE YOUTH SAFETY BATTLEThe Meta case is part of a much larger legal battle involving some of the world's biggest technology companies.Meta, Snap, YouTube and TikTok continue to face thousands of lawsuits in federal and state courts alleging that their platforms were built with features designed to encourage addictive use among children and teenagers. The litigation has drawn claims from parents, individuals, school districts and state governments, many of whom argue that the companies helped fuel a nationwide youth mental health crisis.The federal cases were consolidated before US District Judge Yvonne Gonzalez Rogers in Oakland. Thousands of additional lawsuits remain pending in state courts, including a major collection of cases in Los Angeles brought by individuals who say they or their families suffered harm because of social media platform designs.Around 30 states have separately filed lawsuits against the companies in state courts. A trial involving Meta has also been underway in Nashville since July.META HAD ALREADY LOST MAJOR YOUTH SAFETY CASESMeta's latest settlement follows two significant defeats in New Mexico.In March, a jury ordered Meta to pay $375 million after finding that the company had misled consumers about the safety of its platforms. On August 6, a judge separately found that Meta had created a public nuisance and ordered the company to pay another $567 million while imposing youth-safety measures.The company has faced another setback in a case brought by an individual. In March, the first trial involving an individual's claims against Meta and Google ended in the plaintiff's favour.A Los Angeles jury found the companies liable for depression and anxiety suffered by plaintiff Kaley G.M. and ordered them to pay a combined $6 million in damages. Both companies have said they will appeal the verdict.The settlement does not end the wider legal fight over social media and children. Meta, Snap, YouTube and TikTok remain defendants in thousands of cases, while state governments continue to pursue separate claims.All four companies had previously settled the first federal case scheduled for trial, brought by Kentucky's Breathitt County School District, which alleged that the platforms harmed students. Public records showed the school district was due to receive a combined $27 million.- EndsWith inputs from agenciesPublished By: Sonali VermaPublished On: Aug 26, 2026 18:55 IST