SIOUX FALLS, S.D. — South Dakota will receive at least $52.6 million as its share of a $17.1 billion multistate settlement with Meta Platforms, Inc., Attorney General Marty Jackley announced Wednesday. The state’s share could grow to as much as $73.5 million if certain conditions are met, and payments will be spread out over the next 10 years.
The agreement ends a landmark federal trial in Oakland, California, where California, Colorado, Kentucky and New Jersey were among 29 states that sued Meta in 2023 over claims the company designed Instagram and Facebook to be addictive to children and teens, then misled the public about the harm. The trial, which had been expected to include testimony from CEO Mark Zuckerberg, was cut short by the settlement. It resolves claims brought by South Dakota and dozens of other states and territories.
The settlement still requires approval from the U.S. District Court for the Northern District of California, which is hearing the underlying lawsuit filed against Meta by South Dakota and 28 other states.
“Today’s historic settlement marks a significant milestone in our efforts to protect children online,” Jackley said in a statement. “We have secured a record monetary award and meaningful safeguards for children and parents setting the new national online standard.”
The deal also resolves claims that Meta improperly shared users’ nonpublic information with third parties, including Cambridge Analytica.
What Meta Is Required To Do
Beyond the payout, Meta agreed to a sweeping set of changes to how Instagram and Facebook operate for young users, including:
- A combined two-hour daily time limit across both platforms for children, with mandatory “Productive Pauses” after 15 minutes of continuous use and again at 60 and 90 minutes. The limits stay in place for five years, and could drop to 60 minutes per platform for 10 years if Snapchat, TikTok and YouTube adopt similar terms.
- Nighttime blocks cutting off children’s access from midnight to 6 a.m.
- No push notifications for children on weekdays from 8 a.m. to 3 p.m. during the school year.
- Stronger age verification measures and age-appropriate content controls, including tighter safeguards against bullying and content related to eating disorders, suicide and self-harm.
- More user-friendly parental controls.
- Limits on features linked to poor mental health outcomes in kids and teens, such as beauty filters and visible “like” counts.
An independent auditor and the settling states will regularly assess whether Meta actually follows through.
How We Got Here
The case grew out of a bipartisan, nationwide investigation into how social media platforms are designed and marketed to young people, building on reporting that began with a 2021 Wall Street Journal series showing Meta’s own research linked Instagram use to mental health and body image harm in teen girls, especially. Thirty-three attorneys general ultimately sued Meta as part of the coalition.
During testimony last week in Oakland, former Meta engineering director Arturo Béjar told the court the company consistently prioritized engagement and profit over user safety in its design choices. Instagram head Adam Mosseri took the stand this week and defended the company’s record on child safety and privacy. Meta did not immediately respond to a request for comment on the settlement.
The $17 billion figure is a fraction of Meta’s 2025 revenue of $201 billion, though it ranks among the largest state consumer protection settlements in U.S. history outside the tobacco settlements of the 1990s.
Why It Matters Here
Emily’s Hope has followed the social media litigation closely as part of our broader work on youth mental health and substance use prevention. Matthew Bergman, founder of the Social Media Victims Law Center, visited Sioux Falls earlier this year as the related California trial was unfolding, and Emily’s Hope hosted a community screening and panel discussion on the topic. Read that coverage here: Attorney Leading National Social Media Lawsuits Visits Sioux Falls As L.A. Trial Unfolds.
For background on an earlier verdict in this wave of litigation, see: California Jury Finds Meta, YouTube Liable For Social Media Addiction In Landmark Verdict.
And for a look at what this all means for parents, revisit our earlier coverage: Social Media On Trial: What Parents Need To Know.
