A New Mexico court has ordered Meta to pay an additional $567 million in fines related to child safety, bringing the total penalty in the case to $942 million. The ruling stems from a trial that found the company knowingly harmed children's mental health and concealed information about child exploitation on its platforms.

A New Mexico court has ordered Meta Platforms to pay $567 million to establish a fund addressing the harms its platforms have caused to young people, bringing the total penalties in the case to $942 million. This additional penalty follows a March jury verdict that found Meta liable for knowingly harming children's mental health and concealing information regarding child sexual exploitation on its services. The recent ruling also mandates specific changes to Meta's platforms aimed at enhancing child safety.

The latest judgment, issued by Judge Bryan Biedscheid, mandates that Meta allocate the majority of the $567 million, specifically $420 million, toward treatment services for young people in New Mexico. The remaining funds will support awareness campaigns, prevention efforts, and screening services over the next five years. This penalty is in addition to the $375 million in civil penalties imposed by a jury in March after finding Meta violated the state's Unfair Practices Act by misleading consumers and failing to protect children.

The initial March verdict marked the first time a jury found Meta liable for actions on its platform, stemming from a lawsuit filed by New Mexico Attorney General Raúl Torrez. Torrez accused Meta of prioritizing profits over user safety and knowingly harming children's mental health while concealing information about child exploitation. The jury determined that Meta had committed thousands of violations of the state's consumer protection laws.

In the second phase of the trial, prosecutors sought fundamental changes to Meta's operations, including measures to curb addictive features, improve age verification processes, and strengthen protections against child sexual exploitation through default privacy settings and increased oversight. While the court acknowledged federal laws like the Children's Online Privacy Protection Act (COPPA) limit Meta's ability to implement certain age-verification tools for users under 13, it ordered Meta to continue improving its AI-driven age-assurance tools. The company must also develop a specific model to predict ages under 13 within two years.

Judge Biedscheid characterized Meta's platforms as a "public nuisance," comparing the company to a factory where advertising and content are products, and the psychological harm and sexual exploitation of children are the resulting pollution. This labeling is reportedly the first time a social media company has been legally designated a public nuisance. The court found that the harmful effects of Meta's platforms extend beyond the platforms themselves, creating a societal burden on children, families, schools, hospitals, and law enforcement.

Meta has stated its disagreement with the ruling and intends to appeal. A company spokesperson reiterated Meta's commitment to user safety and transparency regarding the challenges of identifying and removing harmful actors and content.

New Mexico Attorney General Raúl Torrez hailed the decision as a victory for parents and children, emphasizing accountability for companies that endanger young people. The case is one of many lawsuits filed by states and families across the U.S. against social media companies concerning child safety and mental health impacts.