In a landmark legal decision, a jury in New Mexico, USA, found Meta Platforms liable in a child safety lawsuit, ruling that the company knowingly harmed children's mental health and concealed its knowledge of child sexual exploitation on its social media platforms. This verdict marks the first time a jury has ruled against Meta on child exploitation claims, potentially setting a precedent for similar cases across the United States and highlighting ongoing scrutiny of big tech's practices.
The trial, which lasted nearly seven weeks and was brought by the New Mexico Attorney General's office, concluded with the jury deliberating for less than a day. Meta was found guilty of violating New Mexico's consumer protection law and ordered to pay $375 million (approximately €323 million) in civil penalties. However, this fine is only a fraction of the $2.2 billion penalty prosecutors had sought, and with Meta valued at around $1.5 trillion, the financial impact appears minimal, as reflected by the company's stock rising post-verdict.
Jurors agreed with the state prosecutor's arguments that Meta made false or misleading statements about child safety on its platforms and engaged in "unconscionable" trade practices that unfairly exploited children's vulnerability and inexperience. The $375 million penalty was calculated based on thousands of violations, each carrying a maximum fine of $5,000, as noted by juror Linda Payton, who described the decision as a compromise on the estimated number of affected teenagers.
New Mexico Attorney General Raúl Torrez hailed the verdict as "a historic victory for every child and family who has paid the price for Meta's choice to put profits over kids' safety," emphasizing that the damages should send a clear message to big tech executives. In response, a Meta spokesperson stated the company disagrees with the verdict and plans to appeal, asserting its commitment to online safety for teens. The market's indifferent reaction, with Meta's stock increasing, suggests shareholder apathy toward the penalty.
The second phase of the trial is scheduled to begin in May, where a judge will determine whether Meta's social media platforms should fund public programs to address the harm caused. Torrez indicated his office will seek court orders to force Meta to implement changes and impose additional financial penalties. This case is part of a broader legal landscape, as Meta faces thousands of lawsuits alleging it intentionally designed addictive products for young people, contributing to a national mental health crisis, with some claims seeking tens of billions in damages.
Source: www.dw.com