Meta to restrict teen use under $18 billion settlement

Meta, the corporate parent of Facebook and Instagram, has agreed to a landmark legal settlement that includes a payout of up to $18 billion and restrictions on how children can use its social media platforms.

Critics of Meta called the news a monumental victory.

“This is a huge moment,” said Jim Steyer, founder and CEO of Common Sense Media, a leading industry critic. “This is really Facebook and the social media industry’s tobacco moment.”

A series of lawsuits across the country have argued that, like tobacco companies, Meta and other social media platforms knowingly created an addictive product that caused harm, specifically to children.

The settlement announced Wednesday stems from a lawsuit first brought in 2023 by attorneys general from across the country, including New York.

“It’s a transformative agreement that will address some of the harms to young people,” New York Attorney General Letitia James told NY1.

In addition to the payment, Meta agreed to sweeping changes for users under age 18, including a two-hour daily time limit across both Facebook and Instagram.

The apps will also be blocked from midnight to 6 a.m. by default, and notifications muted during school hours. Children will receive a reminder after 15 minutes of continuous use and can opt for a non-algorithmic feed. And they can no longer see the number of likes on posts or use extreme makeup filters.

Many of the changes can be turned off with a parent’s consent. But further restrictions will kick in if other platforms sign on.

In a blog post Wednesday, Meta specifically called out TikTok and YouTube, writing: “We know that when teens are restricted on one app, they simply move to another. For meaningful progress to happen, we urge TikTok and YouTube to join us and state attorneys general in adopting this new standard.”

James said New York will receive up to $1.15 billion of the settlement money, to be used for educational and mental health services.

“Their business model was as follows: one, hook children,” she said. “Two, keep them on your social platform as much as possible, because that’s how they make money. Three, harvest their data, and four, don’t tell the general public anything about it.”

Steyer said: “Now with AI coming, which is essentially social media on steroids, you see major challenges facing parents, young people, teachers and, quite frankly, broader society. So this trial and this settlement is a major step forward.”