Meta ordered to pay $806m to address 'public nuisance' and child harm claims

A New Mexico court has ordered Meta, the parent company of Instagram and Facebook, to pay $806 million ($567 million) as part of the second phase of a landmark trial. The ruling, handed down by Judge Bryan Biedscheid on Thursday, mandates the funds be allocated towards treatment services for young individuals and to modify the platform's operation for minors.

The New Mexico state court found Meta responsible for causing harm to children's well-being and to classify the company's actions as a "public nuisance" in New Mexico. The decision was reached after the state's Attorney-General Raúl Torrez accused Meta of designing its products to addict young users and failing to safeguard children from sexual exploitation on its platforms.

Judge Biedscheid's decree imposes a series of safety measures for young users, including monthly usage limitations on Facebook and Instagram, restrictions on notifications, stricter controls on adult interaction with minors, improved safeguards for AI chatbots, and enhanced monitoring of child sexual abuse reports. These measures are intended to remain in effect for a period of five years.

Meta has announced its intention to appeal the ruling, asserting its continued commitment to protecting teens online. Despite this, the company expressed confidence in its efforts to identify and eliminate harmful content from its platforms. Meta's statement emphasized its steadfast assurance in its record of safeguarding minors online and reaffirmed its intention to challenge the claims that inaccurately depict the company's actions.

The New Mexico Attorney-General, Raúl Torrez, expressed his satisfaction with the ruling, stating that Meta prioritized profits over child safety. He emphasized that this ruling sets a precedent, serving as a blueprint for other states and countries grappling with the same issue. The decision emerged from the second phase of New Mexico's lawsuit, which commenced with a March jury verdict finding Meta guilty of violating the state's consumer protection law by falsely representing the safety of Facebook and Instagram for young users.

The initial order imposed a $375 million ($533 million) fine on the company. During the second trial, which did not involve a jury, Judge Biedscheid heard weeks of testimony focusing on whether Meta's platforms constituted a "public nuisance" under New Mexico law. This case is garnering significant attention as numerous states, municipalities, and school districts across the US are pursuing similar legal actions in an effort to compel the industry to implement necessary changes.