Meta Platforms has agreed to pay up to $16.68 billion to settle claims related to alleged harm to young users and the collection of children’s personal data on Facebook and Instagram.
The settlement brings a major federal trial in California to an end and represents one of the most significant legal developments yet in the growing scrutiny of social media platforms and their impact on children and teenagers.
As part of the agreement, Meta will also introduce stronger safeguards for teenage users, including restrictions on daily usage and access during nighttime hours.
Meta Faces Claims Over Young Users
The legal action centred on allegations that Meta designed features on Facebook and Instagram in ways that encouraged prolonged use among children and teenagers.
State authorities also accused the company of failing to provide adequate information about potential risks associated with its platforms.
A separate part of the case focused on children's privacy. Officials alleged that Meta collected personal information from some users under the age of 13 without proper parental notification or consent, raising concerns under US child privacy laws.
The states further alleged that some of the collected information was used in the development of machine-learning and artificial intelligence systems.
Meta has denied wrongdoing and has maintained that it has invested substantially in safety tools and protections for younger users.
New Restrictions for Teenage Accounts
The agreement will lead to significant changes in how teenagers can access Facebook and Instagram.
Among the measures are daily usage restrictions and nighttime access controls, designed to reduce excessive use of the platforms. Meta is also strengthening parental controls and other protections aimed at younger audiences.
The measures mark an important shift in the way major social media platforms manage teenage accounts as regulators increase pressure on technology companies to address online safety concerns.
Meta has argued that protecting young users should be an industry-wide responsibility rather than an issue addressed by individual platforms alone.
Thousands of Social Media Lawsuits Continue
While the settlement resolves a major part of Meta's immediate legal dispute, it does not end the wider legal battle surrounding social media and youth safety.
Meta and other major technology companies, including Alphabet-owned YouTube, Snap and TikTok parent ByteDance, continue to face thousands of lawsuits in the United States.
Families, individuals, school districts and government authorities have accused social media companies of developing features that encourage compulsive use and potentially contribute to mental health problems among younger users.
More than 3,000 personal injury claims and approximately 1,300 cases brought by public school districts remain pending against social media companies, according to court records cited in the litigation.
Meta Continues to Fight Other Cases
Meta is also challenging decisions in separate cases concerning the safety of young users.
Courts in New Mexico and California have previously issued significant judgments involving the company, while additional proceedings remain active in several US jurisdictions.
Meta has said it intends to appeal rulings it disputes.
The latest settlement removes a major legal uncertainty for the company, but the broader debate surrounding child safety, privacy and social media design is far from over.
With regulators and courts demanding stronger protections, the agreement could also influence how other major technology platforms design and manage services used by teenagers in the years ahead.
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