Michigan To Receive $171M In $17B Meta Settlement Over Addictive Features

Michigan Advance

August 26, 2026

Michigan Attorney General Dana Nessel announced on Wednesday that she, along with the attorneys general of 50 other states and territories, had reached a settlement agreement with Meta, the parent company of Facebook and Instagram, over concerns about the addictive nature of those platforms, especially for children.

The settlement, which Nessel’s office called a “monumental victory,” totals around $17 billion, with Michigan to receive at least $171 million under the agreement.

It addresses allegations that Meta designed its social media apps, specifically Instagram, with addictive features, that it knowingly exposed young users to serious mental harms and intentionally misled the public about the safety of its platforms.

“For too many years, social media platforms have traded our children’s mental health for engagement on their apps,” Nessel said in a press release. “This historic settlement holds Meta accountable and puts critical, first-of-its-kind safeguards in place to protect Michigan kids, including daily screen breaks, nighttime access blocks, and the removal of harmful features like public like counts.”

Nessel, along with 33 other state attorneys general, initially sued Meta in October 2023 in a lawsuit that alleged Meta had received millions of complaints about underage users on Instagram, but never disclosed that fact or made any serious effort to close those accounts.

Those changes — both their implementation and how well they are actually working — will be “regularly assessed” by the states in the settlement and an independent auditor.

The settlement also resolves the states’ claims against Meta over its sharing of nonpublic Facebook user information with third parties, including Cambridge Analytica, before the 2016 election, according to Nessel’s office.

“Now, the responsibility to protect our youth cannot end here,” Nessel said. “It is my hope that this is a turning point for the entire social media industry to prioritize the safety and well-being of children over their bottom line.”

She noted that the money from the settlement will act as a “down payment toward an industry-wide social media experience that allows kids to connect in a healthy way.”

The Michigan Advance, a hard-hitting, nonprofit news site, covers politics and policy across the state of Michigan through in-depth stories, blog posts, and social media updates, as well as top-notch progressive commentary. The Advance is part of States Newsroom, a national 501(c)(3) nonprofit supported by grants and a coalition of donors and readers.