A New Mexico court has ordered Meta Platforms to pay $567 million in remediation costs following a landmark trial that found the social media company knowingly harmed young users and failed to protect them from exploitation on Facebook and Instagram.
Judge Bryan Biedscheid issued the ruling late Thursday, directing that $420 million be allocated specifically for treatment services for young people affected by the platforms. The remaining funds will support awareness campaigns, prevention programs, screening services, and related administrative costs over the next five years.
The decision represents the second phase of a significant legal defeat for Meta. In March, jurors had already imposed $375 million in civil penalties against the company after determining it deliberately concealed information about child sexual exploitation on its platforms while knowingly contributing to mental health problems among young users.
The court’s latest ruling goes beyond financial penalties, mandating substantive changes to how Meta operates its platforms in New Mexico. Facebook and Instagram must now implement banner notifications and informational screens that clearly explain protection features, best practices, and tools for addressing inappropriate content. These notifications must appear regularly to users, and both the platform modifications and any educational campaigns will be subject to state review.
Meta has indicated it will challenge the ruling. A company spokesperson stated the company disagrees with the decision and plans to appeal, maintaining that Meta works diligently to protect users and has been transparent about the challenges of removing harmful content and bad actors from its platforms.
The court faced limitations in what it could order regarding age verification. Federal law, specifically the Children’s Online Privacy Protection Act, prohibits platforms from collecting personal data from children under thirteen or tracking them online, even for age verification purposes. Judge Biedscheid noted that requiring Meta alone among social media companies to verify children’s ages would be inequitable and harmful to the company’s competitive position.
Instead, the court directed Meta to enhance its existing age assurance technologies in New Mexico. These tools employ artificial intelligence to estimate users’ ages based on various signals, including friend networks and the types of content they post and consume. The company must develop a dedicated prediction model for identifying users under thirteen within the next two years.
Meta must also request proof of age from Instagram and Facebook users in New Mexico whom its systems estimate to be under thirteen. When the company determines a user is under thirteen, or under eighteen but cannot determine a specific age, it must apply the strictest privacy protections designed for the youngest users.
The ruling represents one of the most comprehensive court-ordered interventions into social media platform operations to date. It establishes a framework that other states may examine as they grapple with concerns about social media’s impact on young people.
The case underscores growing scrutiny of technology companies’ responsibilities toward minor users and the adequacy of existing federal privacy protections for children online. As Meta prepares its appeal, the decision stands as a significant assertion of state authority to protect young residents from what the court determined were documented harms caused by these widely used platforms.
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