Meta ordered to pay $567m in New Mexico over child mental health harms
US District Judge Bryan Biedscheid’s second-phase verdict requires Meta to implement significant safety reforms, including deleting data for users under 13 and partnering with schools, while the company prepares to appeal the decision.
A New Mexico court has ordered Meta to pay $567m into a fund designed to redress adverse mental health impacts on children, marking a significant escalation in the social media giant’s legal liabilities. The ruling, issued by US District Judge Bryan Biedscheid, adds to a $375m fine imposed in March following a landmark trial where a jury found the company knowingly harmed children’s mental health and concealed information regarding child sexual exploitation on its platforms. Meta’s total liability now stands at $942m.
The financial penalty is structured to prioritise direct intervention, with $420m allocated specifically for treatment services for young people in New Mexico. The remaining funds will support awareness, prevention, and screening services over the next five years. Judge Biedscheid described Meta’s operations as a public nuisance, likening the psychological harm and exploitation found on its apps to pollution that migrates from the digital space into the real world.
Beyond financial penalties, the court mandated substantial operational changes to Meta’s platforms. The company must improve age-assurance tools using artificial intelligence to estimate user ages based on social signals, such as friend networks and content consumption patterns. Meta is also required to develop a dedicated under-13-years-of-age prediction model within two years and create safety reporting portals in partnership with schools or child safety organisations.
The court declined to order strict age verification for all users, citing federal privacy laws and concerns regarding inequity across different social media companies. Instead, Meta must treat users as under 13 or under 18 if it cannot verify their age or determines they fall into those categories. The company must also delete personal data collected from users under 13 and report on its compliance with these abatement measures twice a year.
Meta has stated it disagrees with the ruling and plans to appeal, asserting that its safety efforts are transparent and effective. A company spokesperson emphasised that Meta works hard to keep people safe and remains confident in its record of protecting teens online. New Mexico Attorney General Raúl Torrez hailed the decision as a victory for families, stating it ensures one of the world’s largest technology companies cannot profit from practices that endanger young people without consequence.
The total liability represents a fraction of Meta’s 2025 annual profit, which was approximately $60bn. However, the ruling adds to a growing wave of legal challenges, including a trial in Tennessee regarding Instagram’s impact on teenagers and an upcoming federal trial in Oakland, California. Experts suggest the New Mexico verdict could serve as a precedent for other states seeking to rein in platform design practices that may harm users.
