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Meta Ordered to Pay $567 Million Over Child Safety Failures in New Mexico Case

A New Mexico state judge has ordered Meta to pay an additional $567 million into a fund aimed at addressing harm caused to children by its platforms, bringing the total penalties in the case to $942 million. This ruling follows an earlier $375 million fine and designates Meta's platforms as a public nuisance.

ZeroDay News ·

Source: Security Affairs

A New Mexico state judge has ordered Meta to pay an additional $567 million into a fund aimed at addressing harm caused to children by its platforms, bringing the total penalties in the case to $942 million. This ruling follows an earlier $375 million fine and designates Meta's platforms as a public nuisance.

Judge Bryan Biedscheid, who issued the ruling, likened Meta to a factory where advertising and content are products, and the psychological harm and sexual exploitation of children represent the resulting "pollution." The court determined that the detrimental effects of Meta's platforms on children extend beyond the platforms themselves, impacting the broader internet and the real world, thereby creating a societal burden on affected children, their families, schools, hospitals, and law enforcement. This marks the first instance of a social media company being legally labeled a public nuisance.

The case originated from a 2023 lawsuit filed by state attorneys general. An initial jury verdict in March found Meta in violation of New Mexico's Unfair Practices Act, primarily due to its recommendation algorithms directing young users toward harmful content and predatory contacts. The recent phase, decided solely by the judge, specifically addressed whether this harm constituted a public nuisance affecting the wider community.

Expert testimony presented during the proceedings supported a causal link between social media use and the youth mental health crisis in New Mexico, countering Meta's argument that any observed correlation was not necessarily causation.

A significant portion of the newly ordered funds, $420 million, is earmarked for direct treatment, funding clinical and behavioral health programs for young people already affected. The remaining amount will cover prevention training for teachers and healthcare workers, along with broader awareness efforts, all to be implemented over approximately the next five years.

Beyond monetary penalties, the judge mandated several concrete platform changes. These include prohibiting the recommendation of accounts belonging to users under 18 to adults, banning adults from messaging minors, eliminating the ability for underage accounts to send or receive nudity, and removing "like" counts for teen users. Additionally, push notifications will be blocked overnight and during school hours on weekdays, and total monthly usage for minors across Instagram and Facebook combined will be capped at 90 hours, equating to roughly three hours per day.

Meta has stated its disagreement with the ruling and intends to appeal. A company spokesperson affirmed Meta's commitment to user safety and expressed confidence in its record of protecting teens online, vowing to defend against claims it believes misrepresent the facts.

New Mexico is not the only jurisdiction pursuing action against Meta regarding child safety. Nearly three dozen state attorneys general are involved in a separate case concerning child privacy violations, with a significant trial scheduled to begin soon in California. Earlier this year, Meta also faced a loss in a Los Angeles case where it was found potentially liable for developing deliberately addictive platforms. Furthermore, the European Union is conducting preliminary investigations into Meta over underage users on Instagram and Facebook, indicating a broader, multi-jurisdictional scrutiny of the company's practices.

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