A New Mexico judge has ordered Meta to pay $567 million into an abatement fund to address child harms, identifying the company’s platforms as a significant contributor to the youth mental health crisis. This sum adds to an earlier $375 million in civil penalties, marking a pivotal moment likened by experts to the “Big Tobacco” lawsuits. Meta, however, disagrees with the ruling and plans to appeal, asserting its commitment to protecting teens online.
In a significant legal blow to Meta, a New Mexico judge has ordered the tech giant to pay $567 million into an abatement fund. This ruling stems from a jury's finding that Meta willfully violated the state’s unfair practices act and contributed to a public nuisance by exacerbating a youth mental health crisis.
The judge, Bryan Biedscheid, highlighted in his Thursday filing that Meta's social media platforms are a "significant contributing factor" to the mental health struggles among New Mexico's young population. This decision follows an earlier verdict where Meta was compelled to pay $375 million in civil penalties for similar violations.
The newly mandated $567 million fund will be primarily allocated to treatment for individuals harmed by Meta's platforms, accounting for $420 million. The remaining funds are designated for awareness, prevention, screening, assessment, referrals, coordination, implementation, quality improvement, and evaluation programs.
This case is being closely watched as one of several experts are labeling social media's "Big Tobacco" moment. Reminiscent of the 1990s lawsuits against tobacco companies for misleading the public about product safety, these cases could dramatically reshape the power and influence of tech giants like Meta. The company, in its second-quarter financial filing, revealed that the New Mexico Attorney General intends to seek penalties as high as $62.85 billion in this case alone.
The court's challenge was to determine if Meta's platforms constituted a public nuisance, a concept traditionally applied to physical world issues rather than internet platforms. Judge Biedscheid cited expert testimonies from healthcare professionals, noting the state's inadequate mental health resources for youth affected by social media apps, and concluded that a "causal link" exists between social media and New Mexico's youth mental health crisis.
New Mexico Attorney General Raúl Torrez lauded the judgment, stating it "holds the company accountable for the damage it caused to our children, our families, and our schools, and it forces real changes to how Meta operates in New Mexico."
However, Meta has expressed disagreement with the ruling and announced its plans to appeal. A company spokesperson stated, "We work hard to keep people safe on our platforms and have been transparent about the challenges of identifying and removing bad actors and harmful content. We remain confident in our record of protecting teens online and will continue to defend ourselves against claims that misrepresent the facts."
The lawsuit originated in 2023 when Torrez filed suit after an undercover operation using a fake 13-year-old girl's profile revealed a deluge of inappropriate solicitations. Torrez had initially sought significant overhauls to Meta's apps, including effective age-verification, modified recommendation algorithms, and a fundamental restructuring of Meta's business practices in the state.
Beyond the abatement fund, the Thursday order mandates Meta to enhance "age assurance models and tools in New Mexico" using AI, and to develop a dedicated "under-13-years-of-age prediction model" within two years. Other remedies include simplifying underage usage reporting and collaborating with schools or child safety organizations to establish a reporting portal for suspected underage accounts.
Crucially, the judge did not compel Meta to alter its algorithms, citing potential conflicts with Section 230 and First Amendment protections. Nor was Meta required to cease supporting end-to-end encryption on Facebook. Interestingly, Meta's WhatsApp was deemed not to be a "contributing cause to the public nuisance," as harmful content is not recommended to adolescents on that platform.
