Meta has agreed to pay up to $17.1 billion to settle social-media-addiction claims brought by States Attorneys General (AGs) from 47 states, along with Washington, D.C., American Samoa, and Puerto Rico, including the lawsuit brought by the Tennessee AG over the past several months in Nashville. Tennessee's share of the settlement is $751.9 million, which will be used to fund youth mental health and safety programs. The settlement also requires Meta to limit teen screen time, block late-night access, and implement new age-verification tools.
Key Takeaways
Meta Platforms agreed to settle claims that its social media platforms harmed young users. The deal has now been approved by the California federal judge overseeing the trial in Oakland, California. The settlement will put an end to the federal court litigation in California, as well as nearly all of the separate state-court cases, including the trial in Nashville. Notably, Texas, New Mexico, and Florida are not included in this settlement, with Florida continuing to litigate against Meta.
The Settlement
Settlement talks began mid-trial in the federal case in Oakland, before Judge Yvonne Gonzalez Rogers. That federal suit was brought under the federal Children's Online Privacy Protection Act (COPPA) and state consumer-protection laws. The settlement then expanded to include the majority of states that had sued Meta separately, including Tennessee.
Under the terms, Meta will pay up to $17.1 billion (Meta will only pay 70% of the total amount unless competing platforms like TikTok, Snapchat, and YouTube agree to set default one-hour daily limits for underage users). The payments will be made over a ten-year period.
Beyond the payment, Meta must:
- Limit teens' combined daily use of Facebook and Instagram to two hours, with mandatory breaks after 15, 60, and 90 minutes (for five years);
- Block teen access from midnight to 6 a.m. and turn off notifications during school hours (8 a.m. to 3 p.m.);
- Hide like and reaction counts for teens by default and ban cosmetic-surgery-style/extreme makeup filters on teen accounts;
- Offer teens a non-personalized default feed option and an option to turn off autoplay;
- Expand parental controls to be more user-friendly; and
- Implement a detailed age-verification system, subject to independent audits (discussed below).
Notwithstanding the proposed settlement, Meta continues to deny any wrongdoing.
What This Means for Tennessee
Tennessee filed its own 2024 lawsuit under the Tennessee Consumer Protection Act. That case was four weeks into trial before Chancellor Perkins in Nashville when the settlement was reached. Tennessee's share of the settlement is $751.9 million, which Tennessee Attorney General Jonathan Skrmetti says will fund a new Children's Digital Protection Fund for youth mental health and safety programs.
The specific platform changes Tennessee sought – to autoplay, Reels, notifications, and disappearing content – will be replaced by the uniform national terms to which Meta agreed in the settlement agreement.
Age Verification: What Changes
A major goal for states in these lawsuits was forcing platforms to meaningfully verify whether users are minors instead of relying solely on self-reported birthdates. This settlement achieves that goal.
Meta had already begun moving in this direction. In May, the company announced it was expanding AI-powered tools to identify underage users across Instagram and Facebook. These tools analyze posts, bios, captions, and photos to flag accounts that may belong to teens despite listing an adult birthdate. Flagged accounts are moved into more restrictive settings, and suspected under-13 users may have their accounts removed. However, this approach was initially limited to Facebook in the U.S.
Under the settlement, Meta's age-verification efforts are no longer voluntary. Within one year, Meta must implement an age-verification system for Facebook and Instagram using either third-party tools or its own technology. The system must be independently tested and certified each year to meet accuracy standards.
Additionally, for users under 13, Meta must build a dedicated detection system within two to three years, set annual targets for finding and removing underage accounts, and report results to an independent auditor. The settlement also requires Meta to recognize age information from Apple's and Google's app stores, limit how many times users can try to fake their age, and delete verification data once a user's age is confirmed.
What's Next
With nearly all major state actions now wrapped into a single settlement, the focus shifts to enforcement. The key question is whether TikTok, Snapchat, and YouTube will agree to similar terms. Their decisions will determine not only whether Meta's payment reaches the full $17.1 billion, but also whether the other "significant players" in the social media industry adopt similar protections for young users.
For businesses that market to teens or collect data from young users, this settlement should prompt a closer look at current practices. Companies should evaluate whether their platforms or advertising strategies rely on features such as autoplay, push notifications, or algorithmically personalized content – all of which could face similar scrutiny. Now is also a good time to review age-verification processes, data retention policies for minors, and parental consent mechanisms. Finally, all businesses that rely on social media marketing should evaluate how these standards could influence broader regulatory expectations around youth data privacy and digital well-being.
If you have questions about how this settlement may affect your organization or need guidance on compliance with evolving social media regulations, the attorneys at Baker Donelson are here to help. Please contact the authors, Matt White, AIGP, CIPP/US, CIPP/E, CIPT, CIPM, PGIP and MJ McMahan, to discuss how our experienced counsel can assist you in navigating these complex legal developments.