US judge orders Meta to pay $567 million over harm to children

A New Mexico judge has ordered Meta to pay $567 million and reform how Facebook and Instagram function for young users in the state. The ruling, issued in Santa Fe, alleges the company created a public nuisance that damaged children's mental health. This comes after a $375 million damage award in March, totalling $942 million in New Mexico liabilities.

The 2023 lawsuit by State Attorney General Raul Torrez accuses Meta of misleading the public about its platforms' safety for children. The $567 million settlement, spread over five years, primarily funds mental health treatment and prevention programs for young people. Meta must also implement monthly usage limits for teens, tighten notification controls, enhance safeguards against adult-minor contact, oversee AI chatbots, and improve child sexual abuse reporting.

The firm must collaborate with schools to establish a reporting system for underage users and delete data on children under 13. Despite the hefty fine, Meta's annual profit is around $60 billion, and investors have largely remained unfazed. However, Meta plans to appeal the decision. The ruling still falls short of Meta's total annual profit, and the company continues to face numerous lawsuits, including a trial in California involving 29 states and separate cases in various states.

Meanwhile, several countries are considering banning social media for children under 15 or 16 to mitigate online harm, with Australia being the first to implement such a ban for users under 16 in December.