Meta gets $567 million penalty in New Mexico child safety case

A US judge in New Mexico has ordered Meta to pay an additional $567 million over allegations that the technology giant failed to adequately warn the public about the risks its social media platforms posed to children. The latest penalty is the largest financial sanction Meta has faced in the United States in connection with child safety concerns and brings the total amount the company has been ordered to pay in the New Mexico case to $942 million.

Judge Bryan Biedscheid ruled that Meta’s conduct amounted to a “public nuisance”, drawing a comparison between the impact of its platforms on children and pollution produced by a factory. According to the judge, Meta’s advertising and online content can be viewed as the product of a factory, while the psychological harm and sexual exploitation allegedly experienced by children represent a form of pollution that needs to be addressed.

The latest ruling follows an earlier $375 million verdict against Meta in the same case. The New Mexico action is significant because it represents the first successful state-level lawsuit against Meta over child safety concerns. Meta, which owns Instagram, Facebook, WhatsApp and Threads, has rejected the findings and said it will appeal the latest decision.

The company has maintained that it works extensively to protect young users and has been transparent about the difficulties involved in identifying harmful material and individuals who may pose a threat to children. Meta has also argued that claims against the company do not accurately reflect its record on online safety and said it remains confident in its legal position.

The case originated in a lawsuit filed by New Mexico state attorneys in 2023. Authorities accused Meta of allowing its platforms to expose children to sexually explicit content and potentially dangerous interactions with sexual predators. During the first stage of the trial, the company was found to have repeatedly violated New Mexico’s Unfair Practices Act. The court concluded that Meta’s recommendation systems could direct young users towards inappropriate content and potentially harmful contacts.

Recommendation algorithms automatically select and organise content for users based on their activity and interests. The New Mexico court’s findings have placed renewed attention on how such systems operate and whether social media companies should be held responsible for the consequences of content promoted to children.

In the latest phase of the case, Judge Biedscheid said the alleged harm was sufficiently widespread to qualify as a public nuisance. He argued that the effects of harmful content did not remain confined to social media platforms but could extend into families, schools, hospitals and law enforcement agencies, creating a broader social burden.

A substantial portion of the $567 million penalty will be directed towards measures designed to address the consequences of social media-related harm. Around $420 million is earmarked for clinical and behavioural health programmes and professionals who can assist children affected by such harms. Additional funding will support awareness and prevention initiatives, including training for teachers and healthcare professionals.

The court has also imposed several measures aimed at strengthening protections for children. Meta has been ordered to prevent accounts belonging to users under 18 from being recommended to adults and to stop adults from messaging underage users. The company must also restrict the sending and receiving of nudity involving underage users and introduce a one-strike policy for adult users involved in child sexual exploitation.

Further restrictions include removing visible “like” counts for users under 18 and limiting push notifications during late-night hours and typical school hours. The ruling also requires a monthly usage limit of 90 cumulative hours across Instagram and Facebook for underage users, equivalent to roughly three hours a day.

The decision comes amid growing international scrutiny of social media companies over their impact on children and teenagers. Governments in the UK and European Union have been considering stronger safeguards, particularly around how children can be discovered and contacted online. Some countries are also considering much more restrictive approaches, including preventing children below a certain age from accessing social media platforms.

In the UK, policymakers have been examining measures that would restrict social media access for children under 16 and introduce nighttime limits for older teenagers. The debate reflects growing concern that social media platforms can affect children’s mental wellbeing, expose them to inappropriate material and facilitate contact with potentially dangerous individuals.

Meta is also facing thousands of lawsuits across the United States concerning alleged harms to young users. Earlier this year, the company suffered another significant legal setback in Los Angeles, where a court found that social media companies could potentially be held responsible for designing platforms in ways that encourage addictive use.

Despite the size of the New Mexico penalty, former Twitter executive Bruce Daisley described the amount as relatively small compared with Meta’s overall financial strength. Meta reported $61 billion in revenue between April and June, representing a 28% increase compared with the same period a year earlier.

The latest ruling nevertheless signals a potentially broader shift in how governments and courts approach the responsibilities of major technology companies. With another major trial involving Meta due to begin in California and nearly three dozen US states pursuing claims related to child privacy laws, the legal pressure on the company over youth safety is expected to continue.

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