Meta Pays Up to $16.68B in Child Safety Settlement

The settlement, reached Wednesday during a federal trial in Oakland, California, ends one of the most closely watched legal challenges to a major social media company over its impact on young users. Meta denied wrongdoing as part of the agreement.

The case involved claims from 29 states and was part of a broader wave of litigation accusing social media companies of contributing to a youth mental health crisis. Before the trial, Meta said the four states leading the consumer protection claims could seek as much as $1.4 trillion in penalties under their interpretation of state laws.

The states argued that every month a teenager spent more than 30 minutes a day on Facebook or Instagram could constitute a violation. Their calculations produced more than 265 million alleged violations, with New Jersey's maximum statutory penalty alone potentially reaching hundreds of billions of dollars. The judge had previously described the states' potential penalty figure as extreme.

Under the agreement, Meta will introduce nationwide changes aimed at limiting teenagers' use of Facebook and Instagram, including daily usage limits, nighttime restrictions, and tighter controls on content and notifications. The settlement means Meta will not face a jury decision on those claims, and CEO Mark Zuckerberg will not testify in the trial.

The settlement does not end Meta's broader legal exposure over youth safety. The company continues to face lawsuits from individuals, parents, school districts, and governments, while other technology companies including Snap, YouTube, and TikTok are also confronting similar allegations. The agreement follows recent legal setbacks for Meta, including a New Mexico judge's order this month to pay $567 million and a March jury verdict ordering $375 million.