Explainer-How could New Mexico's $567 million ruling change Meta?

On August 7, a New Mexico court ordered Meta Platforms to make significant changes to its platforms and pay a record $567 million in damages in a growing wave of U.S. lawsuits claiming social media harms young people. The court in Santa Fe ruled that Meta must deposit the money into a fund for teen mental health prevention and treatment.

The $567 million ruling, combined with a $375 million verdict from a related case, far exceeds penalties in other youth-related social media cases. Meta stated it would appeal the decision.

The court ordered Meta to implement measures aimed at protecting youth on Facebook and Instagram. These measures include stricter age verification, limiting users under 18 to no more than 90 hours of usage per month, and prohibiting push notifications during nighttime and school hours. Parents would need to consent to the number of likes on their child's posts, and Meta must ban sexualized chatbot interactions with minors.

The judge also rejected requests to modify Meta's algorithms and features such as infinite scroll and autoplay videos.

The judge found that Meta created a public nuisance by designing its platforms to addict young users and fail to protect them from sexual exploitation. The judge dismissed Meta's argument that the company should be shielded from liability under Section 230 of the Communications Decency Act. The ruling does not affect other states, but it could serve as a blueprint for governments seeking to force changes on social media platforms through the courts.