New Mexico Judge Orders Meta to Pay $567 Million for Teen Safety Case

• Meta ordered to pay $567 million into a fund for youth mental health treatment and prevention in New Mexico, with Meta planning to appeal the ruling.
• The ruling finds that Meta contributed to psychological harm and sexual exploitation of children on its platforms.
• The combined funds will go towards youth mental health programs and platform reforms, with $420 million earmarked for treatment.

"The court considers Meta's platforms to be analogous to the factory, The advertising and other content displayed on those platforms to be what is produced by the factory, and the psychological harm to and sexual exploitation of children to be the pollution that must be abated."

A New Mexico state judge ordered Meta to pay $567 million into a fund for youth mental health treatment and prevention, finding that the tech giant contributed to psychological harm and sexual exploitation of children. This ruling adds to a previous $375 million penalty imposed by a jury in March. The combined funds will go towards youth mental health programs and platform reforms. Meta has stated it will appeal the ruling.

The judge compared Meta's platforms to a polluting factory, an analogy used by Meta's own attorneys at trial. He found that the advertising and content displayed on Meta's platforms caused psychological harm to and sexual exploitation of children, which must be abated.

The ruling is based on New Mexico's Unfair Practices Act, which prohibits companies from hiding risks from consumers. A jury had previously found that Meta violated this law by hiding its platforms' risks from teenagers. The judge also considered whether Facebook and Instagram's design features created a public nuisance under state law.

Meta's internal research showed that its recommendation systems connected adults with children's accounts on Instagram, sometimes steering predators directly toward minors. A 2019 internal test found that 26% of the accounts Instagram recommended to users it had flagged as likely groomers were teenagers.

This ruling sets a significant precedent for tech companies' liability for contributing to psychological harm and sexual exploitation of children on their platforms, though Meta plans to appeal. Lawyers and compliance officers should watch for the implications of this decision, which may affect their clients' social media policies and risk management strategies.

The judge's findings also highlight the need for platform reforms to prioritize youth mental health and safety. The $567 million abatement fund will support community and family-based mental health services for New Mexico youth, as well as screening and assessment programs.

Lawyers and compliance officers should watch for the precedent set by this ruling, which holds a tech giant accountable for contributing to psychological harm and sexual exploitation of children on its platforms. This may have implications for their clients' social media policies and risk management strategies.

Source: Original reporting via Courthouse News