Meta has agreed to pay up to $17.1 billion to settle a major multistate lawsuit in the US that accused the company of designing Facebook and Instagram to keep children and teenagers hooked. The agreement will also bring new restrictions on how users under 18 access and use the two platforms. It marks one of the biggest legal challenges yet to Meta’s approach to engaging young users.

Under the settlement, Instagram and Facebook will impose a default daily limit of two hours for users under 18. Parents will have the option to override the restriction. Teenagers will also lose access to the platforms between midnight and 6 a.m. Meta will reduce notifications overnight and during school hours. It will also introduce interruptions to the endless scrolling experience that keeps users moving through content.

The agreement includes several other changes aimed at reducing the pressure and risks faced by young users. Meta will remove likes and reaction counts from posts by minors. It will also ban cosmetic-surgery filters for younger users. The company plans to strengthen its age-verification systems and improve parental controls, according to a report by Times of India’s Chidanand Rajghatta.

Teenagers will also have the option of using a non-personalised feed. This feed will not rely entirely on algorithms designed to maximise engagement. The move could give young users more control over the content they see and reduce the role of recommendation systems in keeping them active on the platforms.

Meta will also face independent monitoring to ensure that it follows the terms of the settlement. The company has agreed to stop making misleading claims about the safety of its platforms. These measures mean the agreement will bring changes to Meta’s products and practices, rather than simply requiring the company to pay a financial penalty.

Meta is expected to pay around $12.7 billion initially. The final amount could increase to $17.1 billion if rival platforms such as TikTok and YouTube introduce similar protections and contribute to the settlement. The additional payment would therefore depend on other major social media platforms adopting comparable safeguards.

The settlement comes at a high cost for Meta, although it is unlikely to threaten the company financially. Meta reported around $201 billion in revenue in 2025. The settlement is therefore a major legal and reputational setback rather than an existential financial risk.

The lawsuit began in 2023. Attorneys general from 29 US states accused Meta of deliberately designing Facebook and Instagram to encourage compulsive use among children and teenagers. They claimed the company knew its platforms could cause mental and physical harm to young users while downplaying those risks to parents and the wider public.

The states also accused Meta of violating federal child-privacy laws. The allegations included collecting information from children under 13 without proper parental consent. The bipartisan coalition later grew to include 47 states, the US capital and several territories, turning the case into a broad legal challenge against the company.

The trial had started only last week and was expected to continue for several weeks. Meta CEO Mark Zuckerberg could have been called to testify. The settlement has now brought the proceedings to an abrupt end.

The case had become more difficult for Meta after testimony from former safety engineer Arturo Bejar. He told the court that he had repeatedly raised concerns about harmful experiences affecting young users. He also alleged that Meta’s culture placed engagement and growth ahead of safety.

Earlier disclosures had also shown internal concerns about Instagram’s effect on teenagers. These concerns included issues related to body image and mental health. The revelations added to growing criticism over how Meta manages the impact of its platforms on younger audiences.

The allegations against Meta form part of a wider debate over the role of social media in excessive use among children. Critics cited by ToI argue that platforms do more than simply attract users. Their business models reward companies for identifying content, notifications and social pressures that encourage people to keep clicking, scrolling, comparing themselves with others and returning to the platforms.

Meta’s settlement could now increase pressure on TikTok, YouTube and other major platforms. Several of them already face lawsuits from state governments, school districts and individuals over alleged harm to children. The agreement could push these companies to introduce stronger safeguards for young users.

For American families, the changes could lead to fewer notifications during the night, less emphasis on likes and reactions, and greater parental control. The agreement also puts limits on some features that critics say can encourage prolonged use. Its wider impact may depend on whether other major social media companies adopt similar measures and face comparable legal pressure.