Meta agrees to pay Sh2.3 Tn over alleged harm to children on Facebook, Instagram

Meta has agreed to pay up to Sh2.3 trillion ($18 billion) to settle lawsuits brought by US states over allegations that Facebook and Instagram were designed to encourage addictive use among children and teenagers.

The agreement, announced on Wednesday, August 26, ends a federal trial in California over claims that Meta's platforms contributed to harm among young users.

According to multiple media reports, including The Guardian and BBC, the settlement covers 47 states, the District of Columbia and three US territories, with payments to be made over 10 years.

The states accused Meta of knowingly using features such as personalised recommendation algorithms, endless scrolling and notifications to encourage prolonged use among young users.

They also alleged that Meta failed to adequately protect children and misled the public about the potential risks associated with its services.

Meta denied wrongdoing and did not admit liability as part of the settlement.

Under the agreement, Facebook and Instagram will introduce new restrictions for teenage users. Teenagers will have a default daily usage limit of two hours, while access to the platforms will be restricted between midnight and 6 am unless parents provide permission. Push notifications will also be restricted overnight and during school hours.

Meta will strengthen its age-verification systems and introduce tighter default settings for teenage accounts. Parents will receive additional tools to monitor their children's activity, while young users will face more restrictions on personalised feeds, visible like counts and cosmetic filters.

California Attorney General Rob Bonta welcomed the agreement, saying it would make social media “less dangerous for our kids”. He said the settlement would require changes aimed at reducing risks associated with Meta's platforms.

New York Attorney General Letitia James said the settlement would provide up to Sh148.8 billion ($1.15 billion) to New York to support education and services for young people affected by unhealthy social media use.

Meta's chief legal officer, C.J. Mahoney, said the measures would give parents greater control over how teenagers use Facebook and Instagram. He also urged other major platforms, including TikTok and YouTube, to adopt similar protections.

The settlement does not end Meta's wider legal disputes over alleged harm to young people. The company continues to face separate cases brought by parents, school districts and other groups.

Florida opted out of the settlement and plans to continue its own case against Meta, while New Mexico previously reached a separate agreement with the company.