US Court Orders Meta to Pay $567 Million for Harming Children

A judge in New Mexico has ordered Meta to allocate over $567 million to a special fund to mitigate the effects of harm caused to children on social media platforms. The company has stated that it disagrees with the ruling and intends to appeal.

New Mexico Attorney General Raul Torres filed a lawsuit against Meta, the parent company of Facebook, Instagram, and WhatsApp, in 2023, claiming that the tech giant failed to adequately protect children from online threats. During the trial, the prosecution argued that Meta's algorithms directed adult users to content posted by teenagers, while the company concealed internal data regarding potential risks to young users.

In March, a jury concluded that Meta violated New Mexico's Unfair Practices Act by misleading consumers about the safety of its platforms for children, resulting in a requirement to pay $375 million to the state at that time.

The court’s current decision will establish a $567 million fund, with approximately three-quarters of the money to be allocated for the treatment of mental health issues and related services. These funds are expected to be distributed over five years.

The remaining amount will be directed towards awareness and prevention programs, ongoing monitoring and evaluation, as well as cooperation between various services and assessments of program effectiveness.

Meta will also be required to report to the court twice a year on the implementation of the mandated measures.

“Today’s ruling is a victory for every parent concerned about the impact of social media on their child, and for every child deserving to grow up in a safer online environment,” stated New Mexico Attorney General Raul Torres.

In response, Meta has reiterated its disagreement with the court's decision and plans to appeal. The company claims it continues to work towards ensuring user safety and openly discusses the challenges of identifying and removing harmful content and malicious users.