Meta Ordered to Pay Another $567 Million in Child Safety Case, Bringing Total to $942 Million
Meta Platforms, the parent company of Facebook and Instagram, has been ordered to pay another $567 million after a New Mexico judge ruled that its social media platforms created a public nuisance linked to harms affecting young people.
The ruling represents the second major financial blow for Meta in the same New Mexico case. In March, a jury ordered the company to pay $375 million in civil penalties after finding it liable under the state’s consumer protection law. Together, the two court ordered amounts now total $942 million, although Meta has said it intends to appeal.
The latest decision is about more than money. Judge Bryan Biedscheid also ordered a series of changes affecting how Facebook and Instagram operate for young users in New Mexico, making the case one of the most significant legal challenges yet to social media companies over child safety.
$567 million will fund youth mental health programs
Under the ruling issued Thursday, Meta must pay $567 million into a New Mexico fund designed to address youth mental health prevention and treatment.
About $420 million is expected to support treatment services for young people. Other funds will go toward prevention, screening, public awareness programs and related efforts over the next five years.
The payment comes on top of the March verdict, when a Santa Fe jury found Meta liable on two claims brought under New Mexico’s Unfair Practices Act.
That earlier case resulted in penalties of $5,000 per violation, totaling $375 million. The New Mexico Department of Justice described the verdict as the first time a state had prevailed at trial against a major technology company in a case focused on misleading consumers and endangering young people.
New Mexico Attorney General Raúl Torrez filed the lawsuit in 2023. The state’s case focused on allegations that Meta misrepresented the safety of its platforms while failing to adequately protect young users from risks including sexual exploitation and harmful online experiences.
The second phase of the case focused on whether Facebook and Instagram constituted a public nuisance and what Meta should be required to do to address the alleged harm.
Judge Biedscheid ultimately agreed with New Mexico that Meta’s platforms created a public nuisance. The judge found that the harms extended beyond individual users and placed wider burdens on families, schools, health services and law enforcement.
Facebook and Instagram face new restrictions for minors
The ruling could lead to noticeable changes for young Facebook and Instagram users in New Mexico.
Meta must introduce stronger methods for determining users’ ages. Users under 18 would also face a limit of 90 hours per month on the platforms. Push notifications must be disabled during overnight hours and during school hours.
The court also addressed one of social media’s most recognizable features: likes.
Like counts on posts belonging to minors are expected to be hidden by default. A parent or guardian would need to approve changing that setting. The judge also ordered stronger barriers between minors and adults who are not already connected to them.
Meta would be prevented from recommending a child’s account to an unrelated adult, according to AP’s review of the ruling. Adults who are not friends with or followed by a minor would also be prevented from directly messaging that child.
Artificial intelligence is included in the order as well. Meta must prevent sexualized chatbot interactions with minors and blur images suspected of containing nudity.
However, New Mexico did not receive every restriction it requested.
The judge declined to order changes to several major platform features, including infinite scrolling, autoplay videos and recommendation algorithms. According to Reuters, Meta argued during the trial that some of the state’s proposed changes were technically impossible and could potentially force the company to stop operating in New Mexico.
The new requirements currently apply only to users in New Mexico, not Facebook and Instagram users nationwide.
Meta says it will appeal as other lawsuits loom
Meta disputes the state’s allegations and has said it plans to appeal.
The company said it has invested significantly in protections for younger users and continues working to identify harmful content and remove bad actors.
“We remain confident in our record of protecting teens online,” Meta said in a statement reported by the Associated Press. The company said the allegations misrepresented the facts.
The New Mexico ruling could nevertheless have consequences beyond the state.
More than 40 states and about 1,300 school districts have public nuisance claims pending involving social media companies, according to Reuters. Thousands of lawsuits brought by families and young people are also moving through courts around the country.
Torrez has described the New Mexico decision as a possible “blueprint” for other governments seeking court ordered changes to social media platforms.
Another major test is already approaching. A federal trial involving 29 states is scheduled to begin August 12 in Oakland, California. Those states accuse Meta of improperly collecting children’s data, designing Facebook and Instagram in ways that encourage excessive use, and misleading consumers about risks to young users. Meta denies the allegations.
For now, the New Mexico judgment leaves Meta facing a combined $942 million in court ordered payments in one state alone, along with potentially significant changes to the way Facebook and Instagram interact with children and teenagers.
Whether those requirements ultimately survive Meta’s promised appeal could determine whether New Mexico becomes an isolated case or the beginning of a much broader legal shift in how American courts treat social media companies and child safety.
