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A judge in New Mexico ordered Meta to pay $567 million into an abatement fund after a jury ruled the company violated the state’s unfair practices act.
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By Dietrich Knauth Aug 7 (Reuters) - A New Mexico state court ordered Meta Platforms, owner of Facebook and Instagram, to make major changes to its platforms and pay the largest sum yet in a growing wave of U.
Meta has been ordered to pay $567 million to fund youth mental health services in New Mexico in the final phase of a child safety trial. Meta lost the lawsuit in March when a New Mexico jury found the social media company liable for misleading consumers about the safety of its platforms and endangering children.
A New Mexico court ordered Meta to pay $567 million and implement sweeping new protections for teens using Facebook and Instagram.
The new penalty is in addition to the $375 million in civil penalties that jurors ordered against Meta, the parent company of Facebook and Instagram, in March.
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A New Mexico judge ordered new child safeguards for Meta. Advocates hope other courts follow
In a landmark ruling against Meta, a New Mexico judge likened the company’s social media platforms to factories. The psychological harm to children who use Facebook and Instagram, he said, can be seen as their pollution.
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A New Mexico judge ordered the social-media giant to create a new $567 million fund in addition to paying $375 million in previously determined civil penalties.
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In the ruling, the judge notes that Meta created a “public nuisance” by being a significant contributor to the state’s teen mental health crisis.