Montana could receive more than $127 million from a sweeping multistate settlement with Meta Platforms over allegations that the company designed Facebook and Instagram to encourage compulsive use among children while misleading the public about risks to young users.
The state is guaranteed nearly $89 million under the agreement, according to Montana Attorney General Austin Knudsen’s office, with its recovery potentially rising to $127.3 million if additional conditions are met.
The settlement resolves claims brought by 48 states, along with the District of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands, and could require Meta to pay as much as $17.1 billion nationally.
Beyond the financial settlement, Meta agreed to significant changes affecting how minors use Instagram and Facebook, including daily time limits, overnight restrictions, reduced notifications during school hours and stronger age-verification and parental-control measures.
“This settlement agreement is the culmination of years of hard work to hold Meta accountable for their dangerous and deceptive practices that put the health and well-being of Montana kids at risk,” Knudsen said.
Montana began investigating Meta in 2021 as part of a broader examination of the effects of social-media platforms on children. The state alleged that Meta possessed internal research showing risks to young users while making misleading public statements about the safety of its products.
Knudsen subsequently sued the company under Montana consumer-protection laws, alleging Facebook and Instagram were deliberately designed with features intended to keep minors engaged with the platforms.
Under the settlement, at least half of Montana’s proceeds must be used to address harms associated with social media. Eligible uses include expanding the 988 Suicide & Crisis Lifeline and youth crisis services, funding after-school and summer programs, youth mental-health programs, outdoor activities and digital-wellness education.
Money could also be directed to school districts and local governments, digital-literacy counselors, phone-free school initiatives and training for medical providers dealing with issues related to interactive media and body dysmorphia.
The agreement also imposes restrictions on Meta’s platforms for younger users. Children will face a combined two-hour daily limit across Instagram and Facebook, along with mandatory interruptions after extended periods of continuous use. Those restrictions are set to remain for five years.
Access for minors will be restricted between midnight and 6 a.m., while push notifications will be disabled between 8 a.m. and 3 p.m. on school days. Meta also agreed to strengthen age-assurance systems and parental controls.
The company will impose additional safeguards involving bullying, eating-disorder material and content related to suicide and self-harm. The agreement also targets social-comparison features, including beauty filters and visible like counts.
An independent auditor and the states participating in the settlement will regularly evaluate both the implementation and effectiveness of the measures.
Separately, Montana resolved claims involving Meta’s past sharing of nonpublic Facebook user information with third parties, including Cambridge Analytica ahead of the 2016 election. Montana is set to receive an additional $4.3 million under that agreement.
The Meta settlement comes as Montana continues pursuing other technology companies over their treatment of younger users. Knudsen sued TikTok in 2024 over allegations involving addictive and harmful content and has called on Congress to enact additional protections for children online.