A New Mexico judge ordered Meta to pay $942 million in total damages on Thursday, following a two-phase trial that concluded the company failed to protect minors on its platforms and violated state consumer protection laws.
The Breakdown of the $942 Million Penalty
Judge Bryan Biedscheid mandated a $567 million abatement fund, building upon the $375 million in civil penalties previously assessed by a jury in March. The court deemed this fund “necessary, due to the wide-ranging impacts of the harm and the complex nature of the remedy.”
According to the Associated Press, $420 million of the abatement fund is specifically designated for youth treatment services. The remaining balance will be allocated over a five-year period to support prevention initiatives, awareness campaigns, and screening services.
Mandatory Platform Overhauls
Beyond the financial penalties, the ruling forces Meta to implement significant structural changes. The company must now introduce on-platform screens that clearly outline safety tools and protective features. Furthermore, Meta is required to hide “like” counts on photos for underage users by default and provide public disclosures regarding platform risks on its website.
Regarding age verification, the court acknowledged that federal children’s privacy laws limit the use of certain tools for children under 13. Consequently, the judge ordered Meta to enhance its existing age-assurance technology—including AI-driven age estimation—and to develop a specialized model for identifying underage users within the next two years.
Operational Compliance and Accountability
Meta must now collaborate with schools or child safety organizations to establish a portal where educators can report suspected underage accounts. The company is also mandated to purge any personal information collected from users under 13 and provide biannual compliance updates to the court.
In response to the ruling, a Meta spokesperson stated, “We disagree with the ruling and will appeal.”
Legal Precedent and Origins of the Case
The lawsuit was initiated by New Mexico Attorney General Raúl Torrez in 2023. The investigation involved state agents who created a fictitious profile impersonating a 13-year-old girl to test the platform’s safeguards. A March jury verdict found that Meta willfully violated the state’s Unfair Trade Practices Act on 37,500 counts, resulting in the maximum penalty of $5,000 per violation. A subsequent bench trial in May focused on whether the platforms constituted a public nuisance and determined appropriate corrective measures.
The New Mexico Department of Justice notes that this is the first instance in which a state has successfully taken a major technology company to trial over child safety claims. Attorney General Torrez hailed the decision as “a victory for every parent who has worried about what social media is doing to their child.”
While over 40 states have filed lawsuits against Meta regarding child safety, New Mexico remains the only jurisdiction to have brought its case to trial, according to The Wall Street Journal. Legal proceedings continue elsewhere, with a trial currently active in Tennessee and jury selection for a separate case involving four state attorneys general scheduled to begin in Oakland next week.
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