A New Mexico court has ordered Meta to pay $567 million into a five-year fund dedicated to youth mental health services and to implement sweeping safety measures for users under 18 on Facebook and Instagram. The ruling, issued by Judge Bryan Biedscheid, follows a separate jury verdict that imposed $375 million in civil penalties for violating the state’s consumer protection law. Combined, Meta faces $942 million in financial liability from the two judgments, though the company has vowed to appeal both decisions.
Court Finds Meta Created a Public Nuisance
New Mexico Attorney General Raúl Torrez filed the lawsuit in 2023, alleging that Meta designed its products to encourage heavy use among minors and failed to protect children from sexual exploitation. The state argued that Meta concealed internal knowledge about risks to young users and misrepresented platform safety. Judge Biedscheid rejected Meta’s Section 230 defense for the public nuisance claim, stating the case concerned company conduct and platform design rather than liability for user posts. However, he declined to order changes to recommendation systems and certain engagement features, citing legal, technical, and competition concerns.
Youth Mental Health Fund
The $567 million fund will operate for five years under the court’s abatement plan. Of that amount, $420 million is allocated to treatment services for young people in New Mexico, including community programs and family-based behavioral healthcare. The remaining $147 million covers awareness, prevention, screening, referrals, administration, and evaluation. State officials will oversee the programs, and the court reduced the state’s proposed fifteen-year plan to five years.
Mandatory Safety Measures for Teens
The order requires Meta to implement several safety measures across Facebook and Instagram for users under 18:
- Monthly usage limits for teen accounts
- Restrictions on some notifications during school hours and overnight
- Tighter controls on adult contact with minors
- Enhanced age-assurance tools and a model to identify users under 13 within two years
- A reporting channel for schools or child safety groups
- AI chatbot safeguards and reviews of child sexual abuse reports
Meta must report compliance progress twice each year.
Meta’s Response and Appeal
Meta disputed the findings and confirmed its planned appeal. “We disagree with the ruling and will appeal,” a company spokesperson said. Meta stated it works to identify harmful content and remove bad actors, and defended its existing parental controls and teen safety systems. The appeal could delay or alter parts of the order.
Broader Implications
Attorney General Torrez called the ruling a model for other governments pursuing child safety cases. More than 40 states and over 1,300 school districts have filed related public nuisance claims against social media companies, seeking financial recovery, product changes, or both. New Mexico’s order directly combines a treatment fund with court-supervised platform rules.
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