A total of 47 states are set to receive payouts through a historic $17.1 billion settlement with tech giant Meta, according to Stateline, bringing to an end a years-long lawsuit that accused the company of designing its social media platforms to be more addictive to children.
The case and massive settlement have placed a spotlight on a business model that critics say prioritized user engagement and data collection over the well-being of young users.
Here's what to know
In 2023, dozens of states filed suit against Meta, alleging that the social media company behind Facebook and Instagram worsened the youth mental health crisis through addictive product designs.
The case also accused Meta of collecting data from children under 13 without parental consent, according to the Associated Press, and of pushing socially harmful features, such as publicly viewable "like" counts and the ability to manipulate images.
By resolving the dispute when it did, Meta will avoid having CEO Mark Zuckerberg testify at trial.
While the over $17 billion agreement amounts to only a fraction of Meta's 2025 revenue of $201 billion, per the AP, it still ranks among the largest state consumer-protection settlements in U.S. history.
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More background
Parents, teachers, and child advocates have long argued that social media platforms use manipulative features to increase the time that children spend online. These tactics have raised concerns about sleep quality, school focus, family stress, and mental health.
The states' lawsuit alleged that these harms were not accidental side effects but the result of deliberate product design choices. Many have noted that such actions have not been limited to Meta alone and have been widespread across social media platforms.
What's being done?
As part of the deal, Meta must implement or expand several safety measures designed to protect children. Those steps include placing time limits on younger users, enhancing age-check enforcement, increasing parental controls, and curbing content that involves bullying, eating disorders, and self-harm.
The company also agreed to stop sending push notifications to young users during school hours, a notable shift for platforms that have long depended on constant engagement.
Whether the changes truly protect youth will depend on how the new rules are implemented and enforced.
For its part, Meta said in a statement, "Ensuring teens have a safe and productive experience on our platforms is an absolute imperative for Meta," according to the AP.
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