Meta ordered to pay $567 million into abatement fund as remedy to child harms case in New Mexico

Meta has been ordered to pay $567 million into a New Mexico abatement fund as a remedy for alleged child harms caused by its social media platforms. This sum is in addition to the $375 million in civil penalties the company already paid this year for violating New Mexico's unfair practices act. The second phase of the trial aims to determine if Meta's actions constitute a public nuisance, potentially leading to changes in its products.

Judge Bryan Biedscheid emphasized that Meta's social media platforms significantly contribute to the youth mental health crisis in the state, as established by substantial evidence presented in the case. The majority of the abatement fund, amounting to $420 million, will be allocated towards treatment for victims, awareness and prevention efforts, screening and assessment, referrals, and coordination.

Meta and its competitors are facing a series of lawsuits this year, often referred to as "social media's 'Big Tobacco' moment," where companies were held accountable for misleading the public about the safety of their products in the 1990s. In its defense, Meta has stated that it disagrees with the ruling and intends to appeal. The company has been under pressure to implement age-verification technologies, alter recommendation algorithms, and create reporting portals for underage users.

The New Mexico Attorney General, Raúl Torrez, emphasized that the judgment holds Meta accountable for the damage caused to children, families, and schools, compelling real changes in the company's operations within New Mexico.