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Meta agrees $18 bln settlement with 52 U.S. states over teen safety claims

Social media giant to pay $18 billion over a decade under agreement resolving claims related to harm to under-18 users. Terms include daily usage limits, access restrictions and independent audits.

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Helena Vásquez · Business Desk · 28 Aug 2026 · 11:18 · 1 min read
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Meta agrees $18 bln settlement with 52 U.S. states over teen safety claims

Meta Platforms Inc. has reached a $18 billion settlement with 52 U.S. state attorneys general, resolving allegations that its platforms harmed users under 18. The agreement, distributed over 10 years, requires Meta to implement sweeping protections for teen users on Facebook and Instagram.

Under the terms, Meta will pay approximately $12.7 billion directly to participating states, with an additional $5.3 billion contingent on competitors such as YouTube and TikTok adopting comparable measures and contributing matching payments. The company expects to record roughly $10 billion in legal expenses in the third quarter of 2026.

The settlement mandates strict controls for users under 18, including a cumulative two-hour daily time limit across Facebook and Instagram, which can only be disabled with parental consent. If competitors adopt the standards, the limit reduces to one hour per app. Access will be blocked between midnight and 6 a.m., or extended from 10 p.m. to 7 a.m. if peers align with the framework. Notifications are muted during school hours (8 a.m. to 3 p.m.), and usage prompts appear after 15 minutes of continuous use.

Additional protections include non-algorithmic feed options, the ability to disable autoplay, hidden like counts by default, and restrictions on cosmetic surgery and extreme makeup filters. Meta will also fund an independent research foundation to study teen well-being, using consented user data for analysis. The core terms remain in place for 10 years, with annual compliance reviews by an independent auditor for five years.

Meta Chief Legal Officer C.J. Mahoney stated the framework "will only work if all our peers join us."

This article was produced with AI assistance and edited by a Finance Review Daily journalist.
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Written by
Helena Vásquez
Business Desk

Helena covers corporate news for listed and private companies across Europe, from strategy shifts to leadership changes, with an eye for what a story signals about the broader market.

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