Consent Agreement (Full-Text PDF) Includes $18 Billion Pay-Out and Policy Changes
August 26, 2026—In a groundbreaking consent judgment with 52 attorneys general for U.S. states, territories, and the District of Columbia, Meta Platforms, Inc. has agreed to voluntarily pay states $18 billion over a ten-year period.The agreement effectively brings to a close Meta’s part in an industry-wide lawsuit launched in 2022 over “adolescent addiction/personal injury” in regards to using social media.
‘Entice, Engage, and Ensare’
The Plaintiffs alleged that Meta violated the Children’s Online Privacy Protection Act (COPPA). Furthermore, they argued that Meta used Facebook and Instagram “to entice, engage, and ultimately ensare youth and teens” and further “mislead the public about the dangers” the platforms pose to youth.
While denying the allegations, Meta Platforms agreed to settle the complaint. The payout is divided into two parts–$12.7 billion over a ten-year period and an additional $5.3 billion to be released only if YouTube and TikTok make matching payments.
META Calls on Competitors to Adopt Policy Changes, Contribute Financially
Meta agreed to make the following several policy changes, specifics of which are spelled out on the company’s new release:
- Daily limits for teenage users;
- A block on nighttime use and muted notifications during school hours;
- Measures to prevent children under 13 years old from accessing the platforms;
- Disabling cosmetic surgery and extreme makeup filters for teens;
- Age-restricted content; and
- Tools for parents.
Meta called on its competitors YouTube and TikTok to implement the same policies and contribute financially to states’ online safety initiatives.
“These protections will only be truly effective if we work with our peers — TikTok and YouTube — to put the same measures in place,” Meta announced on its website. “While this is an important step, the fact is that teens move fluidly between dozens of apps a day. All platforms should empower parents and support teens by putting the same measures in place, because we know that when teens are restricted on one app, they simply move to another.”
Payouts to States for Legal Costs and Youth Mental Health
According to the agreement, Meta will pay states’ attorneys general over a 10-year period. While states may use a portion of the funds for legal expenses, the funds are earmarked for youth mental health programs, such as the following:
- Crisis intervention services, including the 988 Suicide & Crisis Lifeline and text-based youth crisis lines;
- After-school or summer programs, such as sports, literacy, and dance;
- Public health advertising credits;
- A public education fund for digital wellness;
- Funding outdoor activities;
- Youth mental health programming;
- Digital literacy counselors and phone-free school zones;
- Medical training on interactive media use and body dysmorphia;
- Grants to school districts or other local government entities to accomplish any remedial purpose encompassed here;
- Other remedial or restitutive purposes; and
- Investigation, litigation, and related efforts to improve teen safety on social media.
Some of the top payouts, assuming all funds are paid as part of an industry-wide deal, include: $1.5 billion to California, $615 million to Colorado, $525 million to New Jersey, $366 million to Massachusetts, $358 million to Kentucky, $353 million to Virginia, and $645 million to North Carolina.
“This is about protecting kids and empowering parents,” said North Carolina AG Jeff Jackson. “We know that this company built these apps to keep kids hooked and misled parents about what was happening. Today, Meta has to change those features and hand parents the controls.”
