Meta Hit with $375M Penalty After New Mexico Jury Rules Against Child Safety

A New Mexico jury has ordered Meta to pay $375 million after determining the social media giant violated consumer protection laws by prioritizing profits over children's safety. The verdict follows a seven-week trial where prosecutors argued Meta concealed knowledge about child exploitation and mental health risks on its platforms.

SANTA FE, N.M. — A jury in New Mexico delivered a major blow to Meta on Tuesday, ruling that the social media giant damages children’s mental well-being and breaks state consumer protection regulations.

The groundbreaking verdict follows nearly seven weeks of courtroom proceedings. The jury supported state attorneys who contended that Meta — the parent company of Instagram, Facebook and WhatsApp — put financial gains ahead of user protection. The panel concluded Meta breached sections of New Mexico’s Unfair Practices Act by allegedly concealing its knowledge regarding child sexual exploitation risks on its services and the effects on young people’s mental wellness.

The jury endorsed claims that Meta issued deceptive or false statements and determined the company participated in “unconscionable” business practices that improperly exploited children’s weaknesses and lack of experience.

The panel identified thousands of separate violations, with each infraction contributing to the $375 million financial penalty.

Legal representatives for Meta argued the corporation reveals potential risks and works to eliminate dangerous content and situations, though they admitted some harmful material bypasses their protective measures.

This New Mexico lawsuit represents one of the initial cases to go to trial amid a surge of legal action targeting social media companies and their effects on young users.