New Mexico court orders Meta to pay $567m over harms to children’s mental health

A New Mexico court has mandated Meta, the parent company of Facebook, to contribute $567 million into a fund designed to mitigate mental health issues stemming from the social media giant's platforms. This ruling follows the second phase of a landmark trial where Meta lost in March. The company was found responsible for knowingly harming children's mental health and suppressing information about child sexual exploitation on its platforms, leading to a maximum $375 million fine.

The additional judgment brings Meta's total liability to $942 million. Judge Bryan Biedscheid allocated $420 million for mental health treatment services for New Mexico youth, with the remaining funds to be allocated for awareness, prevention, screening, and other costs over the next five years. The trial, which began in May, aimed to impose significant changes on Meta, including redesigning addictive features, enhancing age verification, and preventing child sexual exploitation through better privacy settings and oversight.

The court also prohibited Meta from applying age-verification tools to children under 13, instead implementing AI-based age-assurance tools tailored to New Mexico's circumstances. Meta expressed disagreement with the ruling and intended to appeal, emphasizing its commitment to user safety and ongoing efforts to deter harmful content.