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Meta Ordered to Pay $375M in New Mexico Child Exploitation Lawsuit

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Why This Matters

The New Mexico jury's ruling against Meta highlights significant concerns over social media platforms' safety measures for children, emphasizing the need for stricter regulations and corporate accountability. This case underscores the ongoing legal and ethical challenges tech companies face in balancing user engagement with child protection, impacting industry standards and consumer trust.

Key Takeaways

A New Mexico jury found Tuesday that Meta violated the state's consumer protection laws by misleading users about the safety of and allowing child sexual exploitation on its Facebook, Instagram and WhatsApp platforms, as reported earlier by Reuters.

The company was ordered to pay $375 million in penalties as a result of the lawsuit, which was brought by the state's attorney general. That sum is the maximum penalty per violation under the state's law, but there's no further information at this time about how the funds will be distributed.

Meta said in a statement that it disagrees with the ruling and will appeal.

"We work hard to keep people safe on our platforms and are clear about the challenges of identifying and removing bad actors or harmful content," the company's statement said. "We will continue to defend ourselves vigorously, and we remain confident in our record of protecting teens online."

New Mexico Attorney General Raúl Torrez alleged that the company's executives knew its products hurt children and disregarded warnings from employees.

"The jury's verdict is a historic victory for every child and family who has paid the price for Meta's choice to put profits over kids' safety," Torrez said in a statement.

Torrez said the state will seek additional penalties and ask the court to require the company to make changes to its platform to protect children.

At the same time, a jury in Los Angeles is considering a case against Meta and Google-owned YouTube brought by a young woman who said she became addicted to YouTube and Instagram as a child. The Los Angeles trial, during which Meta CEO Mark Zuckerberg testified, is seen as a bellwether for similar cases across the country. The jury in that case told the judge on Monday that it was having difficulty reaching a consensus regarding one defendant, but did not name which one.