The U.S. Federal Trade Commission (FTC) and a coalition of state attorneys general reached a settlement with Meta Platforms Inc. that requires the company to halt the creation of new accounts for users under 18 on its flagship platforms, Facebook and Instagram, within the United States. In exchange, Meta will pay $18 billion – the largest ever consumer‑protection penalty in U.S. history – and fund a series of safety programs aimed at mitigating the mental‑health risks associated with social‑media use among minors. The agreement also obliges Meta to submit detailed design‑and‑privacy audits to the FTC for the next decade, ensuring that any algorithmic changes that could affect younger users are scrutinised.
While the settlement applies only to the U.S., Meta’s global reach means the company will likely adopt similar age‑verification and content‑restriction measures across other markets to avoid a patchwork of regulations. Industry analysts note that the deal could pressure other tech giants, such as TikTok and Snapchat, to pre‑emptively tighten their own age‑related policies. The settlement also includes a provision that Meta must provide a transparent, user‑friendly method for parents and guardians to control a teen’s account settings, a step that could become a de‑facto standard for the industry.
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Meta’s legal team has expressed willingness to comply, stating that the company will work with regulators to develop “responsible” tools that balance safety with user experience. The settlement is set to take effect within 90 days, after which Meta will begin rolling out the new age‑gate mechanisms, starting with a mandatory age prompt before account creation.
