A New Mexico state court has ordered Meta to pay $567 million, approximately 18.7 billion baht, to establish a youth mental health recovery fund. It also mandated the overhaul and restriction of Facebook and Instagram usage by children, citing that the company’s platforms create a "public hazard" and focus on profits while neglecting youth safety. Meta has announced plans to appeal the case.
The New Mexico court in the US ruled that Meta must pay $567 million, about 18.7 billion baht, into a mental health fund for teenagers and modify Facebook and Instagram operations to enhance child protection. Judge Brian Beechid determined the company’s platforms pose a "public hazard" and affect child welfare.
This case represents the second phase of litigation. In March, a New Mexico jury ordered Meta to pay $375 million in damages after finding the company violated state consumer protection laws by misleading consumers about the safety of Facebook and Instagram for children and youths.
Raul Torres, the New Mexico Attorney General who filed the lawsuit in 2023, accused Meta of designing its platforms to promote addictive use and failing to protect children from online dangers, including sexual exploitation.
During the trial, prosecutors stated that Meta’s algorithms can direct adults to content posted by teenage users, and the company was accused of concealing internal research on the risks its products pose to youth.
The latest order specifies that most of the $567 million—about three-quarters—will fund adolescent mental health treatment, with payments phased over five years. The remainder will support education and prevention programs, risk screening and assessment, as well as referral and coordination of services.
The judge also ordered Meta to implement enhanced safety measures for youth, such as restricting Facebook and Instagram use for those under 18, limiting notifications, increasing controls on adult-minor interactions, strengthening protections against child sexual exploitation, and rigorously reviewing reports of child sexual abuse content.
Furthermore, Meta must work to prevent children under 13 in New Mexico from accessing Facebook and Instagram and must implement safeguards to stop children from engaging in romantic or sexual interactions with the company’s AI chatbots. Adults are also prohibited from using chatbots to simulate or discuss sexual interactions with children.
Judge Beechid noted in his ruling that teenagers are vulnerable to features designed to boost user engagement, such as autoplay videos, endless scrolling, visible like counts, push notifications, and algorithmic content recommendations.
However, the court did not grant all of New Mexico’s requests, ruling that forcing Meta to change certain algorithms, including endless scrolling and autoplay features, could infringe on the company’s rights under the US Constitution and implicate online platform protection laws.
Meta stated it disagrees with the ruling and will appeal, asserting a history of protecting teens on its platforms and ongoing efforts to detect and remove harmful content.
Torres called the ruling a victory for parents and children, adding that it could serve as a model for other states and countries facing social media’s impact on youth.
The New Mexico case comes amid numerous lawsuits against social media companies across the US, with over 40 states and more than 1,300 school districts alleging social media platforms cause a "public hazard" and harm the mental health of children and youth.
Meta also faces other US lawsuits accusing Facebook and Instagram of being designed to addict children. The company previously warned investors that legal and regulatory pressures concerning social media and youth in the US and Europe could significantly affect its business and financial results.