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What the Settlement Left Out: Meta Can Still Collect Data From Kids

The agreement adds youth controls but leaves Meta free to collect data and sell targeted ads, preserving a business that generated over $200 billion in revenue last year.

  • In August 2026, Meta agreed to pay $17.1 billion to resolve claims from 47 American states alleging the company intentionally designed Facebook and Instagram to be addictive to Youth users and harmful to their mental health.
  • Platform changes are now required, including daily time limits, access restrictions during school hours and late nights, and 'productivity breaks' that interrupt scrolling every 60 minutes to address Youth safety concerns.
  • Despite these adjustments, the settlement fails to restrict Meta from collecting data from Youth users or serving them targeted ads, preserving the company's surveillance-based business model that drives profitability.
  • Meta generated over $200 billion in revenue last year, up 22% annually, creating strong incentive to maximize user time on platforms; the more users scroll, the more data Meta collects and the more effective targeted ads become.
  • Repeatedly violating prior agreements in 2012 and 2019, Meta faces skepticism from observers; former FTC Commissioner Rohit Chopra warned that when companies pay penalties while keeping their business model intact, 'enforcement agencies cannot claim victory.
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What the settlement left out: Meta can still collect data from kids

Meta's surveillance business model has kids as well as adults in its sights. AP Photo/Noah BergerIn August 2026, Meta agreed to one of the largest consumer protection settlements in American history. The settlement resolves claims from 47 states alleging that Meta intentionally designed its Facebook and Instagram platforms to be addictive to young users and harmful to youth mental health. As part of the settlement, Meta agreed to pay up to US$17…

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National Cyber Security broke the news on Friday, September 11, 2026.
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