A New Mexico judge ruled that Meta Platforms must pay $567 million into a youth mental health fund and change how its social media platforms, Facebook and Instagram, protect children. This opens the possibility that the rules for social media could be rewritten.
Judge Bryan Biedscheid of the First Judicial District Court issued the ruling on Thursday. Biedscheid affirmed the claim that Meta’s platforms have helped fuel New Mexico’s youth mental health crisis. The judge also found that the social media platforms facilitated child sexual exploitation and created a public nuisance under state law. The $567 million abatement award is on top of a $375 million civil penalty a jury imposed in March for violations of the state’s Unfair Practices Act. Both rulings expose Meta to $942 million in financial penalties and court-ordered remedies in the case.
A bigger portion of the award, $420 million, will help bankroll a treatment program for young people in New Mexico for the next five years. The remaining amount will support public awareness and prevention programs, screening and assessment, referrals and oversight.
Beyond Financial Penalties
The order, however, is not only about financial penalties.
Over the next five years, the court ordered the social media giant to implement a series of court-supervised safety measures for New Mexico users. The requirements include strengthening age-assurance tools, subject to federal laws such as the Children’s Online Privacy Protection Act; developing a system to predict whether a user is younger than 13; and private-by-default settings for users under 18.
The court order also limits adults from messaging minors with whom they have no connection, limits push notifications during overnight and school hours, and limits the usage of users under 18 at about 90 hours per month across Facebook and Instagram.
It also requires Meta to hide public “like” counts from minors, stronger safeguards against the sharing of nude images involving children, increased enforcement against child sexual exploitation, and prohibit romantic or sexualized interactions between minors and Meta’s AI chatbots.
Court Rejects Other Demands
But the court rejected some of the state’s sweeping demands, such as major changes to Meta’s algorithms and features such as infinite scroll and autoplay. The judge cited First Amendment and Section 230 concerns, while questioning the practicality of imposing some of the proposed changes.
New Mexico Attorney General Raúl Torrez said the decision was historic. “This is not just a judgment against one company. It is a blueprint,” Torrez said. The state official said the ruling could pave the way for other states and countries to hold social media companies accountable over product-design decisions that harm children.
Meta will appeal the ruling. “We remain confident in our record of protecting teens online and will continue to defend ourselves against claims that misrepresent the facts,” Meta’s spokesperson said.
The tech company hinged its argument on Section 230, arguing that it protects the company from liability for content posted by users. It contends that its platforms are not the only ones responsible for youth mental health problems, saying that some proposed remedies are impractical or could force it to leave New Mexico.
Limits, Implications
The decision requires Meta to develop and implement features specific to New Mexico, such as usage limits, notification restrictions, age-prediction systems, and privacy defaults. The company must also submit reports to the court twice a year on the progress of these changes.
The landmark case is among the early lawsuits seeking to hold Meta responsible under a public-nuisance theory based on product design and its effects on children. More than 40 states and more than 1,300 school districts have filed similar cases against social media companies.
There is no guarantee, however, that because of the ruling Meta will adopt the same safeguards nationwide. Its effect could depend on the outcome of Meta’s appeal and how other courts interpret the ruling.
