Meta to pay up to $419M to Indiana, implement child-safety reforms following multi-state lawsuit settlement
MGN INDIANAPOLIS -- Meta Platforms, Inc, parent company of Facebook and Instagram, is set to deliver a guaranteed $296 million, and up to $419.4 million, to Indiana as part of a multi-state lawsuit settlement worth $71 billion.
The announcement came Wednesday from Indiana Attorney General Todd Rokita.
The settlement is meant to resolve allegations that Meta knowingly designed and deployed harmful features on its social media platforms to addict children and teens.
These claims were made by 47 states and four territories.
“This settlement is a milestone victory for Hoosier families,” said Rokita. “For years, Meta prioritized engagement and profits over the mental health and well-being of our children. Today, we are securing both meaningful accountability and concrete changes that will help protect the next generation. Parents will finally have stronger tools, including opting their teens out of algorithm-driven scrolling designed to keep them hooked.”
Rokita submitted the settlement agreement in the joint lawsuit against Meta in the Northern District of California. Subject to the Court’s approval, a consent judgment will be entered.
Rokita states the agreement requires Meta to implement robust, ongoing changes to Facebook and Instagram to protect teens in states that join the settlement.
New provisions to be implemented include:
- Hard cap daily time limits and “Productive Pauses” for children: For its two platforms, Instagram and Facebook, a combined two-hour daily time limit with mandatory pauses after 15 minutes of continuous use and again at 60 and 90 minutes to interrupt endless scrolling. These limits remain in effect for five years. If Snapchat, TikTok, and YouTube adopt comparable terms, the daily limit on each platform will drop to 60 minutes for 10 years
- “Nighttime blocks” restricting children’s access from midnight to 6 a.m.
- Limited school-time access for children, eliminating push notifications on weekdays from 8 a.m. to 3 p.m. during the school year
- Robust age assurance measures to more effectively verify the age of young users;
- Safer, age-appropriate content controls, including stronger safeguards against bullying, content promoting eating disorders, and content related to suicide and self-harm
- Stronger, more user-friendly parental controls
- Limits on social comparison features, including beauty filters and visible “like” counts, that have been linked to poor mental health outcomes in kids and teens
The implementation and efficacy of the features will be regularly assessed by an independent auditor and the settling states.
“This is not just about money — it’s about changing how these platforms operate so they stop exploiting the developing brains of our kids,” Rokita said. “Indiana will continue working with other states to secure similar protections from companies like Discord, Roblox, Snapchat, TikTok, and YouTube. Our children deserve better, and we will keep fighting until they get it.”
The AG's officer states the settlement also resolves claims against Meta for its sharing of nonpublic information about Facebook users with third parties, like Cambridge Analytica, leading up to the 2016 election.
Michigan is also part of the settlement and will receive up to $245,618,237.52.
You can read the full settlement agreement below: