A jury in Santa Fe has ordered Meta to pay $375 million in civil penalties after finding the company misled consumers about platform safety and exposed children to harm, marking the first jury verdict of its kind tied to risks faced by young users on social media.
Jury Finds Violations Under State Law
The verdict followed a six-week trial and found Meta liable on both claims brought by the state of New Mexico under its Unfair Practices Act.
The penalty was calculated at $5,000 per violation, the maximum allowed under the law. While the total is relatively small compared to Meta’s market valuation of about $1.5 trillion, state officials emphasized the legal precedent rather than the monetary scale.
New Mexico Attorney General Raúl Torrez described the outcome as a “watershed moment” for parents concerned about online risks to children.
Torrez said Meta executives were aware of harms to young users, ignored internal warnings, and misrepresented their knowledge to the public.
Undercover Investigation Formed Core Evidence
The case stemmed from a 2023 undercover investigation conducted by the state.
Investigators created decoy accounts on Facebook and Instagram posing as users under the age of 14. These accounts received sexually explicit material and were solicited by adult men.
Several individuals were arrested in May 2024, including two who arrived at a motel expecting to meet a 12-year-old girl based on interactions with the decoy profiles.
The evidence gathered during this operation, alongside internal company documents and testimony, formed the foundation of the state’s case.
Employee Testimony Highlights Internal Concerns
Former Meta employees testified that safety concerns were raised repeatedly but not prioritised.
Arturo Béjar told the court he warned executives after his 14-year-old daughter received unwanted sexual advances on Instagram. He said the platform’s recommendation systems could connect users based on harmful interests.
Brian Boland testified that when he left the company in 2020, he did not believe safety was a priority for leadership, including CEO Mark Zuckerberg and former COO Sheryl Sandberg.
A recorded deposition from Zuckerberg was presented to jurors, in which he described research on platform addictiveness as “inconclusive.” The state countered that internal findings showed features designed to increase user engagement through dopamine responses.
Zuckerberg also stated that he and his wife monitor and evaluate products before allowing their children to use them.
Meta Plans Appeal As Legal Challenges Continue
Meta said it disagrees with the verdict and plans to appeal. A company spokesperson said it continues to work on user safety across its platforms.
The New Mexico case is one of several ongoing legal challenges facing the company.
In Los Angeles, Meta and YouTube are involved in a separate trial over claims that their platforms are addictive and harmful to young users. The case was brought by a plaintiff identified as K.G.M., who alleges long-term mental health effects linked to social media use.
The jury in that case is currently deliberating, with the judge instructing jurors to continue discussions after difficulties reaching a decision on one defendant.
Further Proceedings May Bring Additional Penalties
A second phase of the New Mexico case is scheduled to begin on May 4.
The upcoming bench trial will address public nuisance claims and could lead to further penalties, as well as court-mandated changes to Meta’s platforms.
Potential measures include age verification requirements and expanded protections for minors, as the state argues the company’s services have broadly affected public health and safety.
Featured image credits: artapixel.com
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