Mark Zuckerberg-led Meta Platforms has been ordered to pay $567 million into a fund addressing the mental health effects its platforms have had on children and young people.
The social media giant had previously been handed a $375 million penalty after a jury found it liable for misleading consumers about the safety of its platforms and endangering children, including by enabling child sexual exploitation.
A spokesperson for the company rejected the ruling and said Meta plans to appeal.
A New Mexico state court has ordered Meta Platforms, the parent company of Facebook and Instagram, to pay $567 million to address harms to young people and strengthen protections against online dangers posed by its platforms, per The Guardian and Reuters.
The ruling by State District Judge Bryan Biedscheid concluded the second phase of a high-stakes legal battle brought by New Mexico Attorney General Raúl Torrez in December 2023, which the social media giant lost in March.
In the initial trial, a jury found Meta liable for misleading consumers about the safety of its platforms and endangering children, including by enabling child sexual exploitation. It imposed the maximum penalty of $375 million, meaning Thursday’s ruling brings the total liability Meta faces in the case to $942 million.
According to reports, the $567 million payout will establish a dedicated state fund for youth mental health, with $420 million directly funding treatment services for young people in New Mexico.
The rest will be used to support screening, prevention programs, public awareness campaigns, and related safety initiatives over the next five years.
Judge Biedscheid also ordered Meta to make sweeping changes to how its platforms protect young users.
The company must implement additional safeguards for minors, improve age-assurance measures, restrict certain notifications and usage, and strengthen protections against inappropriate contact between adults and minors. The ruling also calls for measures addressing AI interactions involving minors.
The decision goes beyond the financial penalty, potentially requiring significant changes to how Facebook and Instagram operate for younger users.
New Mexico’s AG Praises The Ruling
The ruling has been praised by New Mexico Attorney General Raúl Torrez, who explained that it moves in the right direction when it comes to holding Big Tech accountable.
“This case has always been about protecting children, standing up for families, and making sure that one of the world’s largest technology companies cannot profit from practices that endanger young people without consequence,” Torrez said in a statement.
He continued, “Today’s decision is a victory for every parent who has worried about what social media is doing to their child and every child who deserves to grow up safer online.”
The attorney general’s office has described the case as a landmark victory that could have implications beyond New Mexico as other states continue pursuing similar claims against social media companies
However, Meta pushed back against the judgment, maintaining that it provides robust protections for younger users.
A spokesperson said the company “disagrees with the ruling” and plans to appeal.
“We work hard to keep people safe on our platforms and have been transparent about the challenges of identifying and removing bad actors and harmful content,” the spokesperson said in a statement.
They continued, “We remain confident in our record of protecting teens online and will continue to defend ourselves against claims that misrepresent the facts.”
The ruling follows a broader legal fight over how Facebook and Instagram protect children, with New Mexico’s case drawing on allegations that Meta knew about dangers on its platforms and failed to adequately address them. The Guardian‘s reporting on child exploitation on Facebook and Instagram was also cited in the state’s case.
Earlier this year, Meta founder Mark Zuckerberg testified in a landmark Los Angeles civil trial and was questioned about allegations that the company’s social media platforms were intentionally designed to be addictive and could pose risks to young people.
A young woman named Kaley brought the allegations in the case, claiming Instagram and Google’s YouTube hooked her from childhood and contributed to her anxiety, depression, body dysmorphia, and other mental health struggles.
The tech boss disputed the characterization, saying he looked to build products with long-term appeal rather than ones designed to get people hooked in the short term and make them feel bad about themselves. He also said the company was focused on “utility and value.”
Other questions centered around beauty filters offered by Instagram, which experts had warned could affect teens’ perceptions of themselves.
Zuckerberg explained that the company decided to allow the filters without recommending them to users, arguing that denying people the tools would be “paternalistic.”
The testimony came as Meta faced mounting scrutiny over how its products affect young users, with the Los Angeles case ultimately resulting in a jury finding Meta and Google liable and awarding Kaley millions in damages.
