A significant proposed settlement, potentially totaling $18 billion, has been reached between **Meta** and a bipartisan coalition of 52 attorneys general. The settlement aims to resolve a 2023 lawsuit alleging that **Meta**'s platforms, **Facebook** and **Instagram**, were intentionally designed to encourage compulsive use among young users, while the company allegedly misled the public about the associated risks.  The lawsuit, spearheaded by California Attorney General **Rob Bonta**, further claimed that **Meta** illegally collected and utilized data from children under 13. This conduct allegedly violated the **Children's Online Privacy Protection Act (COPPA)**, California's False Advertising Law, and California's Unfair Competition Law. ### New Safeguards for Young Users Under the terms of the agreement, which awaits court approval, **Meta** will implement new restrictions for users under 18 on **Facebook** and **Instagram**: * **Default Daily Usage Limit**: A two-hour daily usage limit will be set, which can only be overridden with parental consent. This limit would be reduced to one hour if **YouTube** and **TikTok** adopt similar measures. * **Nighttime Restrictions**: Teens will be blocked from using apps between midnight and 6 a.m. by default. * **Notification Muting**: Most notifications will be muted between 10 p.m. and 7 a.m., and during school hours, with parental modification options. Direct messages and certain security alerts are exempt. ### Enhanced Safety Features and Oversight Additional requirements outlined in the settlement include: * Hiding 'like' and reaction counts from teenage users. * Blocking cosmetic surgery filters. * Providing an option for a non-personalized feed. * Strengthening parental supervision tools. * Deploying advanced age-verification technology to identify and remove users under 13. An independent auditor will oversee **Meta**'s compliance, and the company will be prohibited from making misleading claims about its safety features. ### Financial Implications and Industry-Wide Impact **Meta** estimates the agreement involves approximately $18 billion in payments over ten years. Participating states are set to receive around $12.7 billion. An additional $5.3 billion is contingent on **YouTube** and **TikTok** adopting similar changes, including one-hour daily limits, nighttime restrictions, age-assurance measures, and matching payments. This clause is designed to encourage industry-wide adoption of these protections. **Meta** stated, "The agreement is designed to drive industry-wide adoption, ensuring teens receive consistent protections across the apps they use most, like **YouTube** and **TikTok**. If industry peers adopt this new standard, certain provisions will be strengthened." California alone expects to receive between $1.5 billion and $2.1 billion, with funds earmarked for preventing or remediating mental health harms to young Californians linked to social media use. **Meta** anticipates incurring approximately $10 billion in legal expenses related to the agreement in the third quarter of 2026. Most of these new protections must remain in place for ten years, and the agreement also establishes an independent research foundation dedicated to teen well-being and social media use.