Meta announced a proposed $16.7 billion settlement on August 26, 2026, with US states over allegations that its platforms, Facebook and Instagram, were designed to be addictive to children. The settlement, pending judicial approval, includes new restrictions for US users under 18.
Under the terms, Meta would pay approximately $11.7 billion in 10 annual installments, with an additional $5 billion contingent on rival platforms agreeing to similar terms, bringing the total to a maximum of $16.7 billion. Separately, Meta would pay $75 million toward states' legal costs and $459 million to resolve older claims related to the Cambridge Analytica data controversy.
The funds are expected to support youth mental health programs, crisis lines, after-school activities, and digital literacy initiatives, though final allocation decisions rest with state legislatures.
New platform restrictions include silencing notifications during school hours (8 a.m. to 3 p.m. on weekdays from August 15 to June 15). Accounts with unverified ages after 14 days will be treated as teen accounts regardless of stated age. For users under 13, who are legally barred from the platforms, Meta must presume reported accounts are underage unless proven otherwise and investigate the friend networks of deleted accounts for other underage users.
This settlement marks a significant regulatory step in addressing social media's impact on youth, following similar measures such as Australia's law banning social media use for users under 16, which took effect in Sydney on December 10, 2025.
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