Meta will pay states at least $11.7 billion over the next 10 years under a proposed settlement addressing allegations that Facebook and Instagram harmed children and teenagers. The company has also agreed to pay an additional $5 billion—bringing the potential total to $16.7 billion—if TikTok, YouTube, and Snapchat settle similar state liability claims under comparable terms.
The agreement effectively gives Meta a financial incentive if its biggest competitors do not adopt similar restrictions on children’s social media use. Meta continues to deny the states’ allegations. The company recently reported second-quarter 2026 revenue of $60.8 billion and net income of $15.8 billion.
Additional Terms of the Meta Settlement
State officials announced a settlement valued at approximately $17.1 billion, including a separate $459 million agreement related to the Cambridge Analytica privacy scandal. The Office of New Jersey Attorney General Jennifer Davenport said the agreement also resolves allegations that Meta shared Facebook users’ private information with third parties, including Cambridge Analytica, before the 2016 election.
California is expected to receive the largest payment, estimated at between $1.5 billion and $2.2 billion. The state Legislature and governor will determine how the funds are distributed. According to California Attorney General Rob Bonta’s office, the proposed settlement will support programs focused on preventing and addressing mental health problems and other harms linked to social media use among California youth.
Beyond the financial terms, Meta has agreed to introduce several new protections for teenage users. The settlement requires the company to provide enhanced tools for teens to report potentially harmful content and respond to 90 percent of those reports within six hours.
The agreement also prohibits Meta from displaying likes and reactions to users under 18, bans cosmetic-procedure image filters for minors, and requires the company to offer users under 18 a non-personalized feed. This option would not rely on algorithms designed to recommend content that encourages users to continue scrolling.
Bonta’s office said Meta must implement an age-verification system to identify users under 18 and prevent children younger than 13 from accessing its platforms. The company must also hire an independent auditor with extensive access to its information and resources.
In addition, Meta will be subject to an injunction barring it from making false, misleading, or deceptive statements about the safety and security features of Facebook, Instagram, and its other services.
Source: arstechnica.com