Meta Platforms, the parent company of Facebook and Instagram, has agreed to pay up to $16.68 billion in a landmark settlement resolving major claims that its social media platforms were deliberately designed in ways that could encourage addictive use among children and teenagers.

The massive agreement, announced on August 26, 2026, could become one of the largest consumer-protection settlements involving a technology company in U.S. history. The deal still requires court approval.

The case involved allegations from U.S. states that Meta knowingly used features capable of keeping young users scrolling for extended periods, misled consumers about safety risks and improperly collected personal information belonging to children.

Meta has denied wrongdoing despite agreeing to settle the claims.

The agreement goes far beyond the multibillion-dollar financial payment. Meta has also committed to introducing major changes to Instagram and Facebook, including daily usage limits for younger users, restrictions on nighttime access and stronger safeguards designed to stop children from viewing age-inappropriate material.

Some of the proposed protections include a combined two-hour daily limit for children on Facebook and Instagram, along with mandatory breaks intended to interrupt continuous scrolling. State officials say the measures could significantly change how social media platforms operate for minors.

The settlement brings an end to a high-profile federal trial in California involving claims from 29 states. It also comes as Meta and other major technology companies face thousands of legal challenges alleging that social media products have contributed to mental-health problems among young people.

Separate privacy claims involving the Cambridge Analytica scandal are also covered by portions of the agreement, with hundreds of millions of dollars allocated to resolve those disputes.

The extraordinary settlement represents a major turning point in the growing battle over children, social media addiction and online safety.

While Meta continues to reject accusations that its platforms were intentionally harmful, the multibillion-dollar deal could set a powerful precedent for how Facebook, Instagram and other social media companies design products for younger users in the future.