Meta agreed to a proposed settlement worth about $17 billion to $18 billion with attorneys general from nearly every U.S. state over claims that Facebook and Instagram were designed to drive compulsive use by teens. The deal came during trial and pairs the payment with sweeping limits on how the apps can work for users under 18.
Those limits include a two-hour daily cap, a midnight-to-6 a.m. block, notification defaults that shut off overnight and during school hours, removal of likes and similar reactions, a non-personalized feed option, and a teen reporting tool with faster response targets. Meta also must accept an independent auditor with broad access and cannot make misleading safety claims.
The precedent is bigger than the check: for platforms with young users, the remedy reaches product design, engagement loops, and trust-and-safety operations. If a service’s growth model depends on teen attention, this kind of settlement can now change the product itself, not just the legal bill.