Meta Ordered To Pay $567 Million In New Mexico Youth Social Media Case
A New Mexico state court has ordered Meta Platforms, the owner of Facebook and Instagram, to make major changes to its platforms and pay $567 million into a state fund for teen mental health prevention and treatment.
The ruling marks the largest sum yet in a growing wave of US litigation over claims that social media harms young people. Meta said the claims misrepresented the facts and that it would appeal the ruling.
Meta Faces $567 Million Payment
The court in Santa Fe ruled on Thursday that Meta must pay $567 million into a New Mexico fund focused on teen mental health prevention and treatment.
Earlier in the case, a jury awarded New Mexico $375 million on related consumer protection claims. As a result, the combined amount reaches $942 million.
That figure far exceeds other penalties in youth-related social media cases. For example, a California case in March produced a $6 million verdict against Meta and Alphabet’s Google, the owner of YouTube.
The New Mexico ruling therefore creates a significant financial penalty for Meta while also imposing platform changes within the state.
Court Orders Changes To Facebook And Instagram
Judge Bryan Biedscheid in Santa Fe ordered Meta to introduce measures for users in New Mexico aimed at protecting young people on Facebook and Instagram. However, the ruling does not apply to other states.
Meta must introduce stricter age verification and limit users under 18 to no more than 90 hours a month. It must also disable push notifications overnight and during school hours.
In addition, parents must consent to the number of likes on a child’s post being displayed. Meta must also prohibit sexualised chatbot interactions with minors and blur images suspected of containing nudity.
The judge rejected some measures requested by New Mexico. These included changes to Meta’s algorithms and features such as infinite scroll and autoplay videos.
During the trial, Meta argued that some of the requested changes were not technologically possible. The company also said those measures could force it to leave New Mexico.
Judge Finds Public Nuisance
Biedscheid ruled that Meta created a public nuisance. He agreed with New Mexico’s claims that Facebook and Instagram were designed in ways that addicted young users and failed to adequately protect them from sexual exploitation.
Reuters reported last year on company documents showing that Meta’s AI chatbots could engage children in romantic or sensual conversations.
The judge also rejected Meta’s attempt to dismiss the case under Section 230 of the Communications Decency Act. The law generally shields online platforms from liability for user-generated content.
Public nuisance claims have traditionally involved threats to public health or safety, including pollution. More recently, governments have used such claims against companies that sold or marketed tobacco and opioids.
In New Mexico, the judge found that harms linked to Meta’s platforms extended beyond individual users. He said they also imposed wider costs on families, schools, hospitals and law enforcement.
Meta argued that it had not violated a public right such as access to air or water. The company also said its platforms were not the only social media services used by young people in the state and that the case failed to account for other apps.
Ruling Could Influence Other Cases
The New Mexico decision does not directly affect thousands of lawsuits brought by children and families. It also does not directly determine public nuisance claims brought by more than 40 states and 1,300 school districts.
However, New Mexico Attorney General Raúl Torrez has described the decision as a potential blueprint for governments seeking court-ordered changes to social media platforms.
A federal trial scheduled for August 12 in Oakland, California, will examine claims by 29 states that Meta illegally collected and used children’s data, designed Facebook and Instagram to addict young users and misled consumers.
That case could expose Meta to substantial damages and potentially broad changes to its products.
Meta has denied allegations that it harmed young users or misled the public about the safety of its platforms. The company has pointed to investments in youth-safety tools and said it has worked to identify and remove harmful content.
With inputs from Reuters