Meta Ordered to Pay $567 Million for Harms to Youth from Its Platforms

A New Mexico court has ordered Meta, the parent company of Instagram and Facebook, to pay $567 million in response to harms caused to young users. This ruling marks the second phase of a significant trial addressing the impact of social media on children.

Judge Bryan Biedscheid ruled that $420 million of the total amount will fund treatment services for young people. The remaining money will support awareness, prevention, screening services, and other related costs over the next five years.

This penalty adds to the $375 million in civil penalties imposed on Meta in March. The initial ruling stated that Meta knowingly affected children’s mental health through its platforms and concealed its knowledge of child sexual exploitation.

During the second phase, prosecutors urged changes at Meta. These include curbing addictive features and enhancing age verification. They also called for default privacy settings and stronger oversight to prevent child sexual exploitation.

The total financial responsibility for Meta now stands at $942 million. Compared to its annual profit of $60 billion in 2025, this figure is relatively small. Despite this, Meta investors reacted minimally, with the company’s stock dipping less than half a percent to $589.44 in after-hours trading.

The ruling represents a challenge for Meta, facing numerous lawsuits from families of children harmed by social media. New Mexico Attorney General Raúl Torrez emphasized that the decision highlights accountability for companies when their products put children at risk.

Meta announced plans to appeal. The company stated it works diligently to ensure safety on its platforms and maintains transparency in addressing harmful content and bad actors. Meta expressed confidence in its efforts to protect teens online and intends to challenge claims it feels misrepresent facts.

Potential Changes to Meta’s Platforms

The court mandated the introduction of banners and informational screens on Facebook and Instagram. These changes aim to outline protection features and practices to manage inappropriate content, featuring regular displays. Additionally, an educational campaign in New Mexico will be reviewed by the state.

Federal children’s privacy laws restrict Meta from implementing age-verification measures for children under 13. The Children’s Online Privacy Protection Act (COPPA) prevents Meta from collecting personal data or tracking these children for age verification. The court acknowledged that age verification orders solely on Meta could be unfair and detrimental.

Instead, the court requires Meta to enhance its age assurance tools in New Mexico. This includes using AI to estimate users’ ages based on their social connections and content interactions. Meta must also develop an age prediction model for users under 13 within two years.

Additionally, Meta should request age verification from Instagram and Facebook users in New Mexico suspected to be under 13 years old. If a user is determined to be under 13 or if their age cannot be accurately verified, the user will be treated accordingly until verification is achieved. Meta must also collaborate with schools or child safety organizations to establish a portal for reporting users who may be under 13.

The company is required to delete personal information collected on users under 13. Biannual reports on compliance with these measures are also mandated.

Upcoming Legal Challenges for Meta

Meta faces additional legal challenges, with a trial scheduled this month in federal court in Oakland, California. This trial will involve the first four of 29 states that filed a lawsuit against Meta in 2023. The states claim that Meta’s platforms contribute to the youth mental health crisis due to features designed to addict children.

Eight states, including Tennessee, have initiated their own court cases. Recently, Meta, along with TikTok, Snap, and Google’s YouTube, was sued by families of four teenagers who died by suicide. The families attribute these tragedies to increasing harms from using these platforms.

Laura Edelson, an assistant professor at Northeastern University with expertise in social media and cybersecurity, believes New Mexico’s actions are just the beginning for Meta. She noted that while a law to ban social media isn’t on the horizon, states are finding ways to address harm by holding companies accountable.