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Meta settles $18 billion with 29 US states over child safety case

Meta settles an $18 billion lawsuit brought by 29 US states over social media harms to children, with new rules for teenage users.

Updated on: Aug 26, 2026, 22:38:11 IST
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Meta has settled a major child safety lawsuit in the US involving Facebook and Instagram. The company has reached an $18 billion settlement with 29 US states over allegations that its platforms could harm children and teenagers.

Meta settles a child safety case with 29 US states for up to $16.7 billion, with new daily limits and nighttime blocks for teenage Facebook and Instagram users. (REUTERS/Representational Image)
Meta settles a child safety case with 29 US states for up to $16.7 billion, with new daily limits and nighttime blocks for teenage Facebook and Instagram users. (REUTERS/Representational Image)

Meta will pay $18 billion as part of the settlement. The case was brought by state attorneys general from 29 states. The legal action was led by attorneys general from states including California, Colorado, Kentucky and New Jersey.

Meta accused of harming children

The states accused Meta of designing features that kept children scrolling. They claimed Facebook and Instagram used features that were “harmful and psychologically manipulative” and were designed to keep young users spending more time on the platforms.

The states also accused Meta of failing to properly protect underage users' privacy. The case claimed that the company violated privacy protections for children and teenagers who used its platforms.

Meta reports under question

Another major allegation involved Meta's reports about negative experiences on its platforms. The states accused the company of publishing “profoundly misleading reports” that showed very low rates of negative experiences among users on Instagram and Facebook.

The lawsuit could have exposed Meta to a much bigger financial hit. According to The Wrap, the case could have cost the company as much as $1.4 trillion if it had continued and resulted in the maximum possible penalties.

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New rules for teen users

The settlement now requires Meta to introduce new rules for teenage users. These rules include daily limits on how long teenagers can use the platforms. BBC reported that the court judgment requires Meta to introduce these restrictions.

Meta will also have to introduce nighttime blocks for teenagers. The rules are aimed at limiting teenagers' access to Facebook and Instagram during certain nighttime hours. The settlement does not mean Meta admitted wrongdoing. The company has denied the allegations and said it did not accept responsibility for the claims as part of the settlement.

Child safety pressure grows

The case is significant because it puts pressure on one of the world's biggest social media companies over child safety. The settlement could also become an important example of how US states are trying to make social media companies introduce stronger protections for young users.

The settlement comes after years of growing concerns about children and social media. Regulators and lawmakers have increasingly focused on whether platforms such as Facebook and Instagram do enough to protect teenagers from harmful content, excessive screen time and privacy risks.

Meta faces new restrictions

For Meta, the settlement removes the immediate risk of a potentially far larger legal penalty. The company will now face the $18 billion settlement and new requirements aimed at changing how teenage users access its platforms.

The case is still a major setback for Meta despite the company denying wrongdoing. The settlement combines a potentially huge financial payment with new restrictions on teenage use of Facebook and Instagram.

  • Durva More
    ABOUT THE AUTHOR
    Durva More

    Durva More is a Senior Content Producer at Hindustan Times, where she covers finance, and global news. She brings experience across digital and television journalism, with a strong focus on breaking news, business reporting, and international affairs. Before joining Hindustan Times, Durva worked as an International News Writer at The Economic Times, covering a diverse range of subjects including global politics, business, sports, entertainment, and major world events. She also worked as a Business Reporter with NDTV Profit. A postgraduate diploma holder in Journalism from the Asian College of Journalism, Durva is passionate about field reporting and storytelling. She thrives on the adrenaline of chasing stories, speaking with people from different walks of life, and amplifying voices that deserve to be heard. Her reporting is driven by curiosity, accuracy, and a commitment to making complex subjects accessible to readers. When she is not chasing stories or covering breaking news, Durva enjoys reading books and painting. She loves exploring new ideas, meeting people, and learning about different perspectives. For her, both journalism and art are ways to understand the world and tell stories that matter.Read More

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