Meta Ordered to Pay $567 Million for Harms to Young People in New Mexico

A court in New Mexico has issued an order for Meta, the parent company of Instagram and Facebook, to pay $567 million. This is part of the second phase of a significant trial addressing the negative impact of its platforms on young users. The funds will be used to mitigate these harms by focusing on treatment services for youth, public awareness campaigns, and prevention efforts over the next five years.

Judge Bryan Biedscheid allocated $420 million of this amount for treatment services specifically targeted at young people. The remaining funds will cover awareness, prevention, screening services, and other costs. This ruling follows a prior $375 million civil penalty decided in March, when jurors found Meta guilty of deliberately harming children’s mental health and hiding information about child sexual exploitation on its platforms.

Beyond financial penalties, prosecutors requested structural changes at Meta. The judge was asked to enforce new policies aimed at curbing addictive features, improving age verification, and deterring child sexual exploitation through default privacy settings.

Cumulatively, Meta has been ordered to pay $942 million, which is a relatively small portion of its annual profit of $60 billion in 2025. Despite the ruling, Meta’s stock price showed insignificant change, decreasing by less than half a percent to $589.44 in after-hours trading.

New Mexico Attorney General Raúl Torrez stated that the ruling sends a strong message that companies will face consequences if they knowingly compromise children’s safety. “Today’s decision is a victory for every parent concerned about social media’s impact on their child and for every child who deserves a safer online experience,” he said.

Meta has announced plans to appeal. A statement from the company highlighted their ongoing efforts to maintain safety on their platforms while challenging claims that they indicated were inaccurate. They stressed their confidence in their track record of protecting teenagers online.

Potential Changes for Meta’s Platforms

The court has also directed Meta to create visual prompts and informational displays on Facebook and Instagram. These should explain the protective features and provide guidance on managing inappropriate content, which should be prominently displayed. In connection, an educational initiative in New Mexico will be reviewed by state authorities.

The court emphasized federal children’s privacy laws. Specifically, it noted that the Children’s Online Privacy Protection Act (COPPA) restricts Meta from deploying age-verification tools for users under 13. This law prevents the gathering or indirect tracking of personal data from children for age verification.

To address these challenges, Meta must enhance its age assurance technologies in New Mexico. This includes using artificial intelligence to identify users’ ages based on their interactions and the content they engage with. Additionally, efforts to develop a prediction model specifically for users under 13 will be required within two years. Meta is also tasked with requesting age verification for users who are suspected to be under 13 years old. If users cannot confirm their age, they should be treated as under 13 or 18 depending on the circumstances until verified.

Moreover, Meta will need to work with schools or child safety organizations to create a system for reporting users under 13. Also, they must delete any personal data collected from users under the age of 13. Twice a year, Meta is mandated to report their compliance advances concerning these measures.

Upcoming Legal Challenges for Meta

Meta is preparing for a trial in federal court in Oakland, California. It involves the initial four states from a coalition of 29 that has filed a lawsuit against the company. The charges focus on Meta’s role in the youth mental health crisis by designing features that increase addictive behavior in children on Instagram and Facebook.

Aside from California, eight states, such as Tennessee, are actively involved in their legal proceedings against Meta. Additionally, recent lawsuits have been initiated by the families of four teenagers who died by suicide. These lawsuits accuse Meta, along with other social media companies like TikTok, Snap, and Google’s YouTube, of causing severe harm over extended periods which ultimately led to these tragic outcomes.

Laura Edelson, a Northeastern University assistant professor specializing in social media and cybersecurity, highlighted how this event in New Mexico is the beginning of many challenges Meta might face. Edelson stated, “America is not going to pass a law that bans social media. But if companies like Meta know they’re causing harm to users by product design, the states are finally finding a way to rein this in.”