A court in New Mexico has ruled that Meta, the parent company of Instagram and Facebook, must pay $567 million due to the negative impact on young users from its platforms. Judge Bryan Biedscheid specified that $420 million of this sum will fund treatment services for youths. The remainder will cover awareness campaigns, prevention, and screening services over the next five years.
This ruling follows a March trial decision where jurors imposed $375 million in civil penalties on Meta for knowingly harming children’s mental health and concealing evidence of child exploitation on its platforms. Including the new penalty, Meta’s financial responsibility in this case amounts to $942 million. Despite this, the amount pales compared to the $60 billion profit Meta reported in 2025. Meta’s stock dipped slightly, less than half a percent, to $589.44 in after-hours trading following the news.
New Mexico Attorney General Raúl Torrez emphasized the ruling’s significance, stating it sends a clear message that companies must be accountable if their designs endanger children. He added, “Today’s decision is a win for concerned parents and for children who deserve safer online experiences.”
Meta’s response was to announce plans to appeal. The company insists on its committed efforts to maintain safety and stands by its record of protecting teens online. A spokesperson commented, “We remain confident in our protective measures for young users and will counter any claims that distort the truth.”
Changes Ordered for Meta’s Platforms
The ruling mandates that Facebook and Instagram implement banners and informational screens to clarify protection features, best practices, and tools for handling inappropriate content. These elements must be reviewed in New Mexico. Despite federal children’s privacy laws preventing direct age verification for those under 13, Meta is required to enhance its age assurance tools using AI. This includes analyzing user interactions and content consumption patterns. Additionally, Meta is tasked with creating a prediction model for detecting users under 13 and requesting age proof for underage users on Instagram and Facebook.
If a user cannot verify an age under 13 or under 18, Meta must classify them accordingly. Meta must also collaborate with schools or child safety organizations to form a portal for school staff to report under-13 users. These measures will be regularly reported to the court semi-annually.
Meta Faces Legal Challenges in California
Meta is preparing for another trial in California following a wave of lawsuits. The company will be confronted by the initial four of 29 states suing it federally for contributing to the youth mental health crisis through addictive platform features. Eight other states have proceeded with state court actions, including an ongoing trial in Tennessee.
Recently, families of four teenagers who committed suicide filed a lawsuit against Meta, alongside TikTok, Snap, and Google’s YouTube. The lawsuit claims the platforms caused years of increasing harm that resulted in the teens’ deaths. Laura Edelson, assistant professor at Northeastern University and social media expert, remarked, “The developments in New Mexico could signal a broader shift in holding companies like Meta accountable without new federal laws.”