Court Orders Meta to Pay $375m Over Child Safety Misleading Claims

Court Orders Meta to Pay $375m Over Child Safety Misleading Claims

A court in New Mexico has ordered Meta Platforms Inc. to pay $375 million after a jury found the company misled users about the safety of its platforms for children, in a landmark ruling tied to allegations of widespread exposure of minors to harmful and explicit content.

The verdict, delivered after a seven-week trial, found Meta liable under New Mexico’s Unfair Practices Act for allegedly misrepresenting the safety of its platforms, including Facebook and Instagram, which the company owns alongside WhatsApp.

Jurors concluded that Meta’s platforms exposed children to sexually explicit material and facilitated contact with sexual predators, while the company publicly maintained that its services were safe for younger users. The total penalty was calculated based on thousands of violations, each carrying a statutory fine under state law.

New Mexico Attorney General Raúl Torrez described the verdict as “historic,” noting that it represents the first successful state-level lawsuit against Meta over child safety concerns. He argued that Meta executives were aware of the risks but failed to act decisively, prioritising engagement metrics over user safety.

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During the trial, prosecutors presented internal company documents and testimony from former employees, including whistleblower Arturo Béjar, who testified that internal research showed underage users were exposed to sexualized content on Instagram. He also alleged that Meta’s systems did not adequately prevent predatory behaviour targeting minors.

State evidence reportedly indicated that a significant percentage of users had encountered unwanted sexual content at various points, reinforcing claims that Meta’s content recommendation systems contributed to the problem.

The lawsuit, filed in 2023, accused Meta of using algorithm-driven recommendation systems that could steer young users toward harmful material, including explicit content and interactions linked to exploitation. Prosecutors argued that the company failed to implement sufficient safeguards, such as robust age verification and effective moderation tools.

Meta, led by chairman and CEO Mark Zuckerberg, denied wrongdoing and said it would appeal the ruling. A company spokesperson maintained that Meta has invested heavily in safety measures, including parental controls, content moderation systems, and features designed specifically for teens.

Meta pointed to updates such as “Teen Accounts” on Instagram, which allow younger users and their parents more control over privacy and content exposure. The company has also introduced tools aimed at detecting sensitive interactions and alerting parents when potentially harmful activity is identified.

The case has drawn wider attention amid a growing wave of litigation in the United States involving social media companies and their impact on children and teenagers. Meta is currently facing additional lawsuits, including cases alleging that its platforms are designed to be addictive and harmful to young users.

New Mexico’s lawsuit argued that Meta “steered” minors toward inappropriate content through its algorithms, while ignoring internal warnings and failing to adequately disclose risks to the public. The state said the company’s conduct violated consumer protection laws by creating a misleading impression of platform safety.

Legal experts say the ruling could set a precedent for similar cases across the country, as regulators and states increasingly scrutinize how major technology companies design and manage platforms used by minors.

Court Orders Meta to Pay $375m Over Child Safety Misleading Claims