Meta ordered to pay $US375m over child exploitation
A New Mexico jury found Meta Platforms violated state law in a lawsuit filed by the state attorney general, who accused the company of misleading users about the security of Facebook, Instagram and WhatsApp and allowing the sexual exploitation of children on those platforms.
On Tuesday, a jury found Meta violated New Mexico’s consumer protection law and ordered the company to pay a US$375 million ($A539 million) fine.
“We respectfully disagree with the decision and will appeal.” A Meta spokesperson said in a statement.
“We work hard to keep people safe on our platforms and are clear about the challenges of detecting and removing bad actors or harmful content.”
Representatives for the New Mexico attorney general did not immediately respond to requests for comment.
The jury verdict capped a six-week trial and marked the first jury verdict on these allegations against the social media company, which faces a broader challenge over how its platforms affect young people’s mental health.
New Mexico Attorney General Raúl Torrez, a Democrat, accused the company of allowing predators unrestricted access to underage users and linking them to victims; This often leads to exploitation and human trafficking in the real world.
Meta denied the allegations, saying it had comprehensive security measures in place to protect young users.
The company has come under increasing scrutiny in recent years over its handling of child and youth safety; This was supported in part by whistleblower testimony before Congress in 2021 that claimed the company knew its products could be harmful but refused to act.
The New Mexico case grew out of an undercover operation conducted by Torrez, a former prosecutor, and his office in 2023. As part of the case, investigators created accounts on Facebook and Instagram that appeared to be users under the age of 14. According to Torrez’s office, the accounts were accessed with sexually explicit material and contacted by adults seeking similar content, leading to criminal charges being filed against multiple individuals.
The state alleges Meta told the public that Instagram, Facebook and WhatsApp were safe for New Mexico teens and children, but the company concealed the truth about how much dangerous and harmful content it contained.
According to the state, internal company documents acknowledge issues of sexual abuse and mental health harm. But the government says the company hasn’t built in basic security tools like age verification and insists it’s safe.
The state also accused Meta of designing its platforms to maximize engagement despite evidence that they harm children’s mental health. The lawsuit alleges that features like endless scrolling and autoplay videos keep kids on the site, encouraging addictive behavior that can lead to depression, anxiety and self-harm.
New Mexico’s lawsuit sought monetary damages, as well as an order directing Meta to make changes that would improve children’s safety when using the platforms.
“Over the course of a decade, Meta has repeatedly failed to act honestly and transparently,” state attorney Linda Singer told the jury during closing arguments on Monday.
“Taking action to protect young people in this state has failed. It’s up to you to finish this job.”
Singer told the jury he could award damages of more than US$2 billion ($2.9 billion).
Meta argued that it was transparent about not being able to catch all harmful content on its platforms.
“The evidence demonstrates Meta’s robust disclosures and tireless efforts to prevent harmful content. And those disclosures mean Meta did not knowingly and intentionally lie to the public,” Meta’s attorney, Kevin Huff, told the jury during closing arguments.
