A US court in New Mexico has ordered Meta Platforms to pay $567 million after finding that Facebook and Instagram exposed children to harmful risks and failed to adequately protect young users on the platforms.
The court also imposed a series of restrictions on features used by minors, including push notifications, algorithm-driven recommendations and engagement tools, in a landmark ruling against the social media giant.
The judgment follows an earlier decision in March in which a jury found Meta liable for exposing young users to online predators and violating New Mexico’s consumer protection laws.
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New Mexico is the first US state where a court has ruled that a social media company created a public nuisance through practices that endangered children.
More than 30 US states are pursuing similar legal actions against Meta over allegations that its platforms contribute to risks facing children, including online exploitation and mental health problems.
Under the latest ruling, roughly 75 per cent of the $567 million penalty will be directed into a mental health treatment fund over the next five years.
The remaining money will be used for child safety awareness initiatives and monitoring Meta’s compliance with the court’s directives.
New Mexico Attorney General Raul Torrez welcomed the ruling, describing it as an important victory for children and their families.
The judge, Bryan Biedscheid, found that teenagers were particularly vulnerable to features designed to keep users engaged for longer periods.
Among the features highlighted were autoplay, infinite scrolling, push notifications, visible “like” counts and algorithms that recommend content to users.
The court ordered Meta to limit push notifications for users below 18, restrict their monthly use of Facebook and Instagram to 90 hours and prevent certain notifications from being delivered during school hours.
Meta must also hide “like” counts from young users and strengthen safeguards aimed at stopping children under 13 in New Mexico from opening accounts on its platforms.
The company has additionally been ordered to submit compliance reports to the court twice each year detailing the steps it has taken to implement the reforms.
Meta, however, rejected the findings and said it would appeal the decision.
“We disagree with the ruling and will appeal,” the company said, maintaining that it has a strong record of protecting teenagers online.
During the trial, prosecutors accused Meta of withholding internal findings about risks to young users while its recommendation systems allegedly directed adults towards content created by teenagers.
The latest ruling adds to Meta’s growing legal challenges in the United States.
Another major case involving similar allegations is scheduled to begin in California next week, while the company has also faced lawsuits involving claims that social media platforms contribute to mental health problems among young people.
Earlier this year, a Los Angeles jury ordered Meta and Google to pay $6 million to a 20-year-old woman in a bellwether case concerning alleged social media-related mental health harm.
Meta, alongside Snap, TikTok and YouTube, has also reached confidential settlements in separate litigation involving allegations about the impact of social media on children.
