California Attorney General Rob Bonta has announced a proposed settlement with Meta that could require the technology company to pay up to $17 billion over 10 years and make sweeping changes to Facebook and Instagram aimed at protecting children and teenagers from potential harms associated with social media use.
The agreement was announced on August 26, 2026, as part of a bipartisan coalition of 51 attorneys general. The proposed settlement remains subject to court approval through a consent judgment.
The settlement follows a lawsuit filed in 2023 alleging that Meta designed and deployed features on Instagram and Facebook that encouraged compulsive use among children and teenagers, while allegedly misleading users, parents and the public about the risks. The trial began August 18 in the U.S. District Court for the Northern District of California.
California could receive up to $2.1 billion
Under the proposed agreement, Meta would pay the states up to $17 billion over 10 years. California is expected to receive between $1.5 billion and $2.1 billion, subject to court approval.
California officials said a significant portion of the state’s funds would be earmarked for programs related to preventing or addressing mental-health and other harms affecting young Californians associated with social media use. The ultimate allocation would be determined by the California Legislature and governor.
Proposed limits on teen social media use
One of the most significant provisions would establish a default two-hour daily time limit for users under 18, which could only be lifted by a parent. If other social media companies adopt similar measures, the limit would fall to one hour.
The agreement would also establish a default overnight block from midnight to 6 a.m. for users under 18. That restriction could also be lifted by a parent and could expand to 10 p.m. to 7 a.m. if other platforms agree to comparable measures.
Notifications for young users would be blocked by default overnight and during specified school hours. The settlement would also prohibit Meta from displaying numbers of likes or reactions to users under 18 and ban cosmetic-procedure image filters for that age group.
Greater parental control and age verification
The proposed agreement would require Meta to strengthen parental supervision tools and implement age-assurance measures designed to identify users under 18 and children under 13. The company would also be required to maintain and improve existing teen safety measures.
Teenagers would receive an enhanced mechanism for reporting potentially harmful content, with Meta required to respond to 90% of those reports within six hours. Young users would also have an option to use a non-personalized feed, reducing reliance on algorithms designed to continuously recommend content.
An independent auditor would oversee Meta’s compliance, with access to information and resources and the ability to communicate concerns directly to participating attorneys general.
Lawsuit alleged violations involving children’s data
The 2023 lawsuit alleged that Meta illegally collected and used data from children under 13, designed its platforms in ways that encouraged excessive use and failed to adequately disclose safety risks to users and families.
The states alleged violations of federal and state laws, including the Children’s Online Privacy Protection Act, California’s False Advertising Law and California’s Unfair Competition Law.
Attorney General Bonta described the agreement as a major step toward making social media safer for children, emphasizing that the proposed changes would introduce enforceable protections and greater transparency.
The settlement represents a significant escalation in government efforts to hold major technology companies accountable for the design and impact of social media platforms on young users. If approved by the court, the agreement would combine a multibillion-dollar financial commitment with extensive changes to how teenagers use Facebook and Instagram.
The case also comes amid growing national scrutiny of social media companies over youth safety, privacy and the potential psychological effects of highly engaging digital platforms.
