Meta has agreed to pay $17 billion to settle a landmark lawsuit brought by states over allegations that Facebook and Instagram contributed to social media addiction among young users.
According to CBS News, the agreement resolves claims involving 47 states. The original 2023 lawsuit alleged that Meta deliberately encouraged children to remain engaged with its platforms while downplaying potential risks.
The states also accused the company of violating federal privacy protections involving children under 13.
The settlement includes expanded parental controls and restrictions on social-comparison features such as visible “like” counts.
Meta called the agreement an important step toward improving youth safety and urged competitors, including TikTok and YouTube, to adopt similar protections.
The settlement represents a major legal and financial setback for the social media giant.
Related Tweet:
Meta and coalition of state attorneys general have settled a major federal trial centering on allegations that the social media giant misrepresented the extent of child-related mental health harms caused by apps like Facebook and Instagram. https://t.co/hJZS4XuAGS
— CNBC (@CNBC) August 26, 2026
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