A New Mexico court has ordered Meta Platforms Inc. to pay a total of $942 million to address harms to children on its platforms, following a landmark ruling that found the company’s social media services created a public nuisance under state law.
In a decision issued Thursday, New Mexico Judge Bryan Biedscheid imposed a $567 million abatement fund on top of a $375 million civil penalty levied in March. The judge ruled that Meta’s platforms, including Facebook and Instagram, contributed to a youth mental health crisis in the state and failed to adequately protect children from harm.
Key Components of the Ruling:
- $420 million of the abatement fund will be allocated to treatment services for affected youth.
- The remaining $147 million will fund awareness campaigns, screening services, prevention programs, and platform changes over the next five years.
- Meta must implement banner notifications on its platforms to highlight safety features, best practices, and tools for addressing inappropriate content.
- The company must also improve age verification systems and default privacy settings for minors, subject to state review.
Judge Biedscheid compared Meta’s role to that of a polluting factory, stating that the company’s algorithms and content recommendations acted as harmful byproducts that required abatement. The ruling cited expert testimonies linking Meta’s platforms to increased mental health harms, exposure to sexually explicit material, and contact with predators among young users.
Meta’s Response and Appeal Plans
Meta disputed the ruling, calling it an overreach and vowing to appeal. In a statement, a company spokesperson said:
"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 spokesperson also noted that federal children’s privacy laws limit Meta’s ability to apply age-verification tools to children under 13.
Legal and Policy Background
The case stems from a 2023 lawsuit filed by New Mexico’s Attorney General, Raul Torrez, who argued that Meta’s platforms endangered children by steering young users toward harmful content through its recommendation algorithms. In the first phase of the trial, a jury found Meta in violation of the state’s Unfair Practices Act, concluding that the company knowingly harmed children’s mental health and concealed evidence of child sexual exploitation on its platforms.
The second phase focused on whether Meta’s actions constituted a public nuisance—a legal concept typically applied to environmental or health hazards. Judge Biedscheid ruled that the harms were widespread enough to qualify, citing testimony from healthcare professionals, educators, and law enforcement who linked Meta’s platforms to rising rates of anxiety, depression, and exploitation among minors.
Platform Changes Ordered by the Court
Beyond financial penalties, the ruling mandates structural changes to Meta’s platforms:
- Default privacy settings for users under 18 must be set to the most restrictive levels.
- Regular display of safety information, including explanations of existing protections and tools for reporting harmful content.
- Ongoing oversight by New Mexico authorities to ensure compliance with the court’s orders.
The judge acknowledged that while Meta is not the sole contributor to youth mental health challenges, its platforms were a significant factor in the crisis, as evidenced by the substantial body of testimony and data presented during the trial.
Reactions from Advocacy Groups and Officials
New Mexico’s Attorney General, Raul Torrez, hailed the ruling as a victory for children and families, stating:
"This case has always been about protecting children, standing up for families, and making sure that one of the world’s largest technology companies cannot profit from practices that endanger young people without consequence. Today’s decision is a victory for every parent who has worried about what social media is doing to their child."
The ruling marks the largest financial penalty against Meta over child safety issues and the first time a state successfully sued the company for endangering minors on its platforms. Legal experts note that the case could set a precedent for similar lawsuits across the U.S., as states increasingly scrutinize social media platforms’ impact on youth mental health.
What’s Next?
Meta has indicated it will appeal the decision, prolonging the legal battle. Meanwhile, the company must begin implementing the court-ordered changes and allocating funds to the abatement program within the specified timeline. New Mexico authorities will oversee compliance, with the potential for further adjustments based on ongoing reviews.
The ruling does not address whether Meta’s actions violated federal laws, such as the Children’s Online Privacy Protection Act (COPPA), but it underscores growing state-level efforts to hold tech companies accountable for harms to children online.