In August 2026, Meta, the parent company of Facebook and Instagram, reached one of the largest consumer protection settlements in U.S. history. The deal resolves allegations from 47 states that Meta intentionally designed its platforms to be addictive for young users and harmful to their mental health. As part of the agreement, Meta agreed to pay up to $17.1 billion in penalties over the next decade—roughly 20% of its 2025 pretax profits. Additionally, the company committed to making several changes to its platforms for younger users, including daily time limits, restrictions on access during school hours and late nights, and mandatory “productivity breaks” that interrupt scrolling every 60 minutes. While the $17.1 billion fine and platform changes have dominated headlines, the settlement does not stop Meta from collecting data from young users, using that data to sell targeted ads, or showing those ads to young users. In other words, although Meta agreed to some safeguards for young users, it maintained its core business model, which relies heavily on data collection and targeted advertising. Meta’s main source of revenue is advertising. It is currently the second-largest digital advertising company by revenue and is expected to surpass Google soon. Last year, Meta earned over $200 billion, a 22% increase from the previous year. This growth comes from serving more ads to users and charging advertisers more for those ads. The longer users spend on Meta’s platforms, the more ads they see and the more revenue Meta generates. This creates a strong financial incentive for the company to keep users engaged and to collect as much data as possible. Meta’s advertising model relies on a system of user surveillance that allows advertisers to target individuals who are most likely to buy their products or services. To do this, Meta collects vast amounts of data, including users’ social connections, browsing habits, app usage, purchases, demographics, ad interactions, and even how they use third-party products. The more time users spend on Meta’s platforms, the more data is collected, and the more effective the targeted ads become. The recent settlement does not change this underlying incentive to keep users engaged and to maximize ad revenue. This is not the first time Meta has faced government action over its data practices. In 2012, then-Facebook Inc. settled with the Federal Trade Commission (FTC) over claims that it misled users about its privacy settings and collected data without consent. In 2019, the FTC sued Facebook again, accusing it of violating the 2012 agreement by continuing to collect user data without permission. Meta paid a $5 billion penalty and promised to stop the practice. However, in 2023, the FTC again accused Meta of violating the 2019 settlement, seeking to limit how the company collects and uses data from young users. Meta challenged the FTC’s authority, and the case is still ongoing. In 2026, Meta once again settled with the government, paid a penalty, and promised changes. However, the settlement still allows Meta to collect data from young users and serve targeted ads to them. Advocates for youth safety and legislators have long argued that banning data collection and targeted ads would remove the financial incentive for social media companies to design addictive platforms. By not including such restrictions in the latest settlement, critics believe the states missed a chance to change this incentive structure. Meta’s pattern of repeatedly violating the terms of its settlements, facing penalties, and continuing its business practices suggests that the company sees the costs of these violations as relatively small compared to its profits. With this pattern in mind, it remains unclear whether the latest settlement will meaningfully protect young users or simply allow Meta to continue operating as usual.