On Thursday, Meta Platforms, Inc. (NASDAQ:META) was ordered to pay $567 million and implement sweeping changes to Facebook and Instagram for young users after a New Mexico judge ruled the company contributed to harming children’s mental health and safety.
Judge Orders Sweeping Changes to Facebook and Instagram
New Mexico state Judge Bryan Biedscheid ruled that Meta created a “public nuisance” in the state, Reuters reported.
The judge sided with Attorney General Raúl Torrez in a lawsuit accusing the social media giant of designing Facebook and Instagram in ways that encourage excessive use among young people while failing to adequately protect them from sexual exploitation.
As part of the ruling, Meta must pay $567 million and comply with a five-year court order requiring significant changes to how its platforms operate for minors in New Mexico.
The decree requires Meta to impose monthly limits on teens’ use of Facebook and Instagram, restrict engagement-driven notifications and tighten controls on contact between adults and minors.
It also mandates additional safeguards for AI chatbots interacting with young users and enhanced review procedures for reports involving child sexual abuse.
Meta Plans to Appeal Ruling
Meta said it intends to appeal the decision, arguing it has invested heavily in teen safety and content moderation.
“We remain confident in our record of protecting teens online and will continue to defend ourselves against claims that misrepresent the facts,” the company said in a statement.
Meta did not immediately respond to Benzinga’s request for comment.
Case Marks Latest Legal Setback For Meta
The latest ruling follows the first phase of the case in March, when a jury found Meta violated New Mexico’s consumer protection law by misrepresenting the safety of Facebook and Instagram for younger users.
The jury awarded $375 million in damages.
The second phase, decided solely by the judge after three weeks of testimony, focused on whether Meta’s platforms constituted a “public nuisance” under state law. Biedscheid ultimately concluded they did.
Price Action: Meta shares closed Thursday up 0.19% at $589.90 and edged down 0.08% to $589.44 in after-hours trading, according to Benzinga Pro.
According to Benzinga Edge Stock Rankings, Meta scores in the 70th percentile for Growth, although the stock has lagged across the short, medium and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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