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Meta settles with states in landmark social media addiction case

4:56
NJ attorney general 'pleased' with Meta lawsuit settlement
Imen Ben Youssef/AFP via Getty Images
ByMax Zahn, Aaron Katersky, Katherine Faulders, and Elizabeth Schulze
August 26, 2026, 2:40 PM

A bipartisan coalition of 52 attorneys general on Wednesday reached a landmark settlement with Meta that will change how young users interact with Instagram and Facebook.

The settlement includes a default daily time limit of two hours for users under 18 that can only be lifted by an individual's parent. Meta will also stop displaying numbers of likes or reactions for young users.

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Young users will have access to an optional non-personalized feed, which doesn't use an algorithm to target them with content aimed to keep them endlessly scrolling.

The tech giant agreed to pay up to $18 billion in installments over the next 10 years, according to a statement issued by the company. Meta did not admit wrongdoing in agreeing to the settlement.

Meta confirmed the settlement in its statement, saying the company "partnered with state attorneys general to set a new industry standard."

A photograph taken during the World Economic Forum annual meeting in Davos, January 19, 2025, shows the logo of Meta, the US company that owns and operates Facebook, Instagram, Threads, and WhatsApp.
Fabrice Coffrini/AFP via Getty Images

"Ensuring teens have a safe and productive experience on our platforms is an absolute imperative for Meta. We want to get this right for parents and teens," the company said.

In an interview with ABC News Live, New Jersey Attorney General Jennifer Davenport touted the settlement.

"Every day we think about different ways to protect our kids, and we know the harms of social media," she said.

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The set of app changes forced upon Meta, Davenport added, is "not something that any court has ever ordered."

State attorneys general had accused Meta of designing a dangerous product for young users, claiming the company knew it was dangerous and lied about it. Meta had pushed back on the claims, calling them "unsubstantiated" and arguing the company has created protections for younger users.

The high-profile federal case at a courthouse in Oakland, California, began last week. The two sides reached a settlement a day after testimony from Instagram head Adam Mosseri, who on Tuesday denied hiding information from the public about the safety of the popular social media app.

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The settlement comes weeks after Meta lost a separate case brought against the company in state court by the New Mexico attorney general. A judge said Meta contributed to a youth mental health crisis and ordered the company to pay $567 million and make changes to its apps. Meta said it would appeal the ruling.

The settlement agreement reached on Wednesday must be approved in court. The only states not included in the settlement agreement are New Mexico and Florida.

In a statement sent to ABC News, Florida Attorney General James Uthmeier sharply criticized the settlement as "nothing more than a slap on the wrist for a trillion-dollar company."

"The payouts to the states are peanuts compared to the profound harms Meta's profit-driven addictive features have inflicted on our children," Uthmeier said. "We'll see them at trial."

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