Meta Platforms is facing mounting legal pressure over allegations that Facebook and Instagram were designed to encourage addictive use among children and teenagers. The company has agreed to a settlement worth up to ₹1.48 lakh crore to resolve lawsuits brought by 29 US states. According to court filings, the states alleged that Meta deliberately designed its social media platforms in ways that encouraged underage users to remain engaged for extended periods. Meta has denied the allegations and has not admitted legal liability as part of the settlement.
The agreement was reached while federal proceedings in the case were underway in California. The litigation was among the major legal challenges in the US concerning the impact of social media on children and teenagers. Under the settlement, Meta will be required to introduce additional safeguards, including daily usage limits for teenage users and restrictions on access to its platforms during nighttime hours.
The company will also have to strengthen its age-verification systems. The measure is intended to prevent children from accessing platforms or age-restricted content that may not be appropriate for their age. The settlement also requires Meta to develop additional digital tools to help parents and guardians monitor their children’s online activity and improve their safety.
Why Did 29 US States Take Legal Action Against Meta?
Attorneys general from several states, including California, Colorado, Kentucky and New Jersey, alleged that Meta deliberately developed features and platform designs that encouraged excessive and compulsive use among young users. The states also accused the company of violating consumer-protection laws by allegedly misleading users about the safety of its platforms.
US authorities additionally accused Meta of violating the federal Children’s Online Privacy Protection Act (COPPA). The allegations claimed that the company collected personal information from some children without adequately notifying their parents or obtaining the required parental consent. Authorities further alleged that some of the information was subsequently used in the development of machine-learning and generative artificial intelligence systems.
Meta has rejected the allegations. The company has maintained that it has taken extensive measures to protect younger users. It has also argued that describing social media use as an addiction does not, by itself, establish consumer deception because social media addiction is not formally recognised as a psychiatric disorder.
The settlement comes as Meta, along with Snap, Alphabet and TikTok parent company ByteDance, faces a wider wave of lawsuits concerning the alleged impact of social media on the mental health and wellbeing of young people. In separate cases, the companies have been accused of using platform features that encourage children and teenagers to remain online for prolonged periods.
Meta has also suffered legal setbacks in several other cases in recent months. In March, a New Mexico jury ordered the company to pay ₹3,150 crore after finding that it had allegedly misled consumers about platform safety. Earlier this month, another judge ordered Meta to pay ₹4,763 crore and implement measures aimed at improving youth safety.
In a separate Los Angeles case, Meta and Google were held liable for harm suffered by a plaintiff. The case involved claims related to depression and anxiety, with the plaintiff awarded around ₹50 crore in damages. Both companies have said they intend to appeal those decisions.
What Child Safety Measures Will Meta Be Required to Introduce?
The latest settlement is expected to increase scrutiny of Meta’s approach to child safety, data privacy and platform design. Daily usage limits, nighttime access restrictions and stronger age-verification measures could significantly change how teenagers use Facebook and Instagram.
The dispute over children’s personal information and its alleged use in artificial intelligence systems could also create broader regulatory challenges for social media companies. The legal action by 29 states highlights growing pressure in the US for greater accountability from technology companies over platform designs and data practices affecting children and teenagers.
About the author — Ayesha Aayat writes on cybercrime, digital safety, and emerging online threats. Her work focuses on public awareness, legal clarity, and technology-driven risks.
