Meta has been ordered to pay $375 million in civil penalties after a New Mexico jury found the company misled consumers and failed to protect children on its platforms, including enabling conditions linked to child sexual exploitation.
The ruling marks the first time a court has held Meta liable for harm tied to activity on its platforms.
Landmark verdict
The case was brought by Raúl Torrez, Attorney General of New Mexico, following a lawsuit filed in December 2023 after a two-year investigation revealed how Facebook and Instagram were being used in child exploitation networks.
“The jury’s verdict is a historic victory for every child and family who has paid the price for Meta’s choice to put profits over kids’ safety,” Torrez said.
“Meta executives knew their products harmed children, disregarded warnings from their own employees, and lied to the public about what they knew. Today, the jury joined families, educators, and child safety experts in saying enough is enough.”
The jury awarded the maximum penalty under state law, issuing fines of $5,000 per violation under the Unfair Practices Act, totalling $375 million.
Evidence and internal warnings
In taped depositions played during the trial, Meta‘s big boss Mark Zuckerberg and Instagram head Adam Mosseri said harms to children, including sexual exploitation and mental health impacts, were inevitable given the scale of the company’s platforms.
Executives also told the court that the company has invested billions in safety measures, including Instagram Teen Accounts, introduced in 2024, which apply default protections to users aged 13 to 17.
Evidence presented included a 2024 sting operation, dubbed “Operation MetaPhile”, where three men were arrested for allegedly targeting children through Meta’s platforms and attempting to meet them in person.
Witnesses also highlighted flaws in Meta’s moderation systems, with investigators claiming the company’s reliance on AI generated large volumes of low-quality reports that were unusable for law enforcement.
Additionally, the court heard that Meta’s decision to encrypt Facebook Messenger in 2023 limited access to critical evidence in cases involving child exploitation.
Meta to appeal
Meta has rejected the findings and confirmed it will appeal the ruling.
“We respectfully disagree with the verdict and will appeal. We work hard to keep people safe on our platforms and are clear about the challenges of identifying and removing bad actors or harmful content,” a Meta spokesperson said.
The company added that it remains confident in its safety record, citing investments in tools such as Instagram Teen Accounts, introduced in 2024 to provide default protections for younger users.
Legal and regulatory implications
The ruling is significant given longstanding protections under Section 230 of the US Communications Decency Act, which typically shields platforms from liability for user-generated content.
However, Meta’s attempts to dismiss the case on Section 230 and First Amendment grounds were rejected, as the lawsuit focused on platform design and internal decision-making rather than on speech itself.
The trial lasted nearly seven weeks, with testimony from law enforcement, child safety organisations, including the National Centre for Missing and Exploited Children, and current and former Meta employees.
What comes next?
Further legal proceedings are scheduled to begin on May 4, where prosecutors will seek additional financial penalties and court-mandated changes to Meta’s platforms.
Proposed changes include stronger age-verification systems, the removal of predatory users, and safeguards for encrypted communications.
The case is expected to have broader implications across the tech sector, with legal experts suggesting it could open the door to further litigation and increased regulatory scrutiny of social media platforms.
Meta is also facing separate legal action in Los Angeles, where families and school districts allege platforms including Meta, Snap, TikTok and YouTube were designed to be addictive and harmful to young users.
While Snap and TikTok have reached settlements, Meta and YouTube continue to contest the claims.
Top Image: Mark Zuckerberg