A judge in New Mexico on April 10 ordered Meta, the owner of Facebook and Instagram, to pay $567 million and change the way its platforms operate for young users in the state, after finding the company liable for harming children's mental health.
The ruling came in the second phase of a landmark trial against the tech giant. In March, a jury concluded that Meta violated the state's consumer protection laws by misrepresenting the safety of Facebook and Instagram for young users, and ordered the company to pay $375 million in damages.
Under the latest ruling, Judge Bryan Biedscheid said the bulk of the money, about $420 million, would fund treatment services for young people, with the remainder allocated to awareness, prevention, screening, and other costs over the next five years.
Prosecutors had asked the judge to impose fundamental changes on Meta to restrict addictive features, improve age verification, and prevent child sexual abuse through default privacy settings and tighter oversight.
The ruling could also reshape Meta's platforms. The judge ordered Facebook and Instagram to design banner screens and information displays explaining protective features, best practices, and tools for handling inappropriate comments, and to show them regularly.
These changes, along with an educational campaign in New Mexico, will be subject to review by state authorities.
Meta said it would appeal the ruling and reiterated its efforts to identify and remove harmful content from its platforms.
“We remain confident in our track record of protecting teens online and will continue to defend ourselves against allegations that misrepresent the truth,” the company said.
The judge heard three weeks of testimony in the second trial, which was held without a jury and focused solely on whether Meta's platforms constituted a “public nuisance” under New Mexico law.
The case is being closely watched across the U.S., as many states, cities, and school districts pursue similar lawsuits to force changes in the tech industry.
