- The court ordered Meta to pay $567 million to address children's mental health issues online.
- The court mandated Meta to implement changes including banner screens explaining protection features, improve age assurance tools, develop an under-13 prediction model, and create a reporting portal for schools.
- The court noted federal privacy laws like COPPA prevent ordering age verification for children under 13, and that applying it only to Meta would be inequitable.
- New Mexico Attorney General Raúl Torrez called the decision a victory for parents and children, stating it sends an unmistakable message that companies will be held accountable when their product designs knowingly put children at risk.
- Investors reacted mildly, with Meta's stock down less than half a percent to $589.44 in after-hours trading.
A New Mexico court has ordered Meta to pay $567 million to address harms to children from its platforms, marking a significant ruling in a landmark trial.1
Judge Bryan Biedscheid stated that $420 million of the penalty will fund treatment services for young people, while the remainder will support awareness, prevention, and screening services over the next five years. This ruling adds to a previous $375 million civil penalty imposed in March, where jurors found Meta knowingly harmed children's mental health and concealed risks of child sexual exploitation.
Attorney General Raúl Torrez hailed the decision as a victory for parents, stating, “Today’s decision is a victory for every parent who has worried about what social media is doing to their child and every child who deserves to grow up safer online.” Meta plans to appeal, asserting its commitment to safety and transparency regarding harmful content.89
The court mandated Meta to enhance its age assurance tools in New Mexico, utilizing artificial intelligence to assess users' ages based on their social interactions and content consumption. Additionally, Meta must collaborate with schools or child safety organizations to establish a reporting portal for users potentially under 13.
The ruling underscores the challenges posed by the Children's Online Privacy Protection Act (COPPA), which restricts age-verification methods for children under 13, preventing Meta from requiring personal data for age checks.567
Overall, the total financial responsibility for Meta now stands at $942 million, a fraction of its $60 billion annual profit in 2025.
“The court also mandated Meta to add banner screens explaining protection features, improve age assurance tools, and create a school reporting portal. However, COPPA prevents ordering age verification for under-13s, and applying it only to Meta would be inequitable.”
ABC7 Los Angeles
