Meta has been ordered by a New Mexico court to contribute $567 million to a fund designed to mitigate the mental health impacts reportedly inflicted on children by its social media platforms. This decision stems from a jury ruling in March, which concluded that Meta was aware of the potential harm its platforms could cause to children’s mental health and failed to take sufficient action against child sexual exploitation. With the addition of this latest financial obligation, Meta now faces a total liability of $942 million in this case.
Out of the $567 million designated in the recent ruling, $420 million is allocated for mental health treatment services for young individuals in New Mexico. The remaining funds are earmarked for prevention and awareness initiatives, screening services, and other related measures over a five-year period. Moreover, the court has mandated that Meta enhance child-safety measures across Facebook and Instagram. This includes refining age-assurance systems, delivering clearer guidance on safety and privacy tools, and developing mechanisms to identify users who might be younger than 13.
Additionally, Meta is required to collaborate with educational institutions or child-safety organizations to establish a system for flagging accounts suspected of being operated by children under 13. The company is also tasked with deleting personal data collected from these underage users and must provide semi-annual progress reports to demonstrate compliance with the court’s orders. However, the court decided against imposing universal age verification solely in New Mexico, citing concerns about fairness and existing federal privacy laws for children.
In response to the ruling, Meta has expressed its intention to appeal, disputing the court’s decision and asserting that it prioritizes user safety and has implemented measures to combat harmful content and enhance online safety. This case contributes to the mounting legal pressure on Meta, as similar lawsuits alleging that its platforms negatively impact young users are currently underway in other states across the United States.