Meta reaches monumental $18b child safety settlement with US states

Meta has reached a landmark multibillion-dollar settlement, subject to court approval, with a coalition of US state attorneys general (AGs) to conclude a high-profile trial concerning allegations that its platforms intentionally addict and endanger underage users.

As widely reported last week, the federal lawsuit, originally filed in 2023 by California and 28 other states, alleged that Meta violated the federal Children’s Online Privacy Protection Act (COPPA), as well as state consumer protection and false advertising statutes. The action claimed the tech giant knowingly engineered addictive features across Facebook and Instagram that harmed children's mental and physical health, whilst illicitly collecting data on users under the age of 13 without parental consent.

According to Bloomberg (£), negotiations between Meta and state officials began on Tuesday evening, bringing a halt to trial proceedings in California and pausing a related action in Tennessee. While Meta maintains it denies any legal wrongdoing, the agreement ends the courtroom battle in exchange for extensive financial penalties and operational concessions.

Under the financial terms, Meta agreed to penalties of between $17.1 billion (£12.59 billion) and $18 billion (£13.26 billion). Structurally, the settlement forces Meta to implement sweeping changes for users under 18 within months. These include default daily usage limits that can only be lifted by a parent; a nighttime usage block from midnight to 6 am, with notifications going silent between 10 pm and 7 am during school hours; a complete ban on cosmetic image filters; and the removal of visible like and reaction counts. Meta must also offer non-personalised feed options, respond to teen safety reports within six hours, fund an independent research foundation using consented data, and submit to an independent compliance auditor for five years.

In a statement, California Attorney General Rob Bonta said, "Meta has agreed to make massive transformations that will reduce the risk of harm from its platforms — and will do it within months. We are talking about time limits, stopping notifications during school, a block on the app during critical overnight hours, bans on plastic surgery filters, and so much more. Alongside a bipartisan coalition of my colleagues, I am proud to deliver this settlement that addresses the concerns at the core of our lawsuit and institutes real change, real transparency, and real enforceable protections for children on Facebook and Instagram — right now, no more waiting."

Following the settlement, Meta issued an open letter calling on competitors TikTok and YouTube to implement matching safeguards, claiming such protections will require an industry-wide approach. Meta tied approximately 30% of its settlement amount to whether TikTok and YouTube agree to implement equivalent daily limits, night modes, and age assurance, and agree to pay matching amounts.

The settlement represents the first time Meta has been forced to overhaul everyday user features in the US. By establishing a major benchmark for algorithmic accountability and teen safety, the outcome is expected to influence hundreds of pending addiction claims against social media companies and carry substantial regulatory implications for other jurisdictions worldwide.

In the UK, Prime Minister Andy Burnham is under pressure to decide how the government will protect children from social media harms. As Politico reports, recent events in France, which overturned its national social media ban for under-15s, and an Australian study revealing that over 80% of teenagers in the country continued using social media three months after the ban took effect, will give ministers plenty to think about. 

On Thursday, The Guardian reported that Work and Pensions Secretary Pat McFadden told Sky News that he expected Meta to roll out the new safety features in the UK. "We don’t want a situation where young people in America have got a higher rate of protection than young people in the UK." 

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