Meta Fined $375M for Harming Teens’ Mental Health & Hiding Exploitation Risks

A New Mexico jury has determined that Meta deliberately harmed the mental health of children and concealed what it knew about child sexual exploitation on its social media platforms, thereby facilitating such criminal conduct. The verdict, delivered this Tuesday, carries a penalty of $375 million.

Meta Found Liable for Exploitation and Harm

During deliberations, the jury utilized a checklist of accusations presented by the prosecution, which argued that Meta failed to disclose what it knew about difficulties enforcing its under-13 age restriction, the prevalence of teen suicide-related content on social media and the role of Meta’s algorithms in prioritizing sensational or harmful content.

This decision follows a nearly seven-week trial and comes as a federal court jury in California continues deliberating whether Meta and YouTube should be held responsible in a similar case.

Jury Sides with Prosecutors on Prioritizing Profit

Jurors sided with prosecutors in New Mexico, who contended that Meta – owner of Instagram, Facebook, and WhatsApp – prioritized financial gain over safety. The jury found that Meta violated several sections of New Mexico’s Unfair Practices Act, based on allegations that the company concealed what it knew about the dangers of child sexual exploitation on its platforms and its impact on children’s mental health, according to the Associated Press.

The jury agreed with claims that Meta made false or misleading statements and likewise found that the company engaged in “unconscionable” business practices that unfairly exploited the vulnerability and inexperience of children.

$375 Million Penalty: Thousands of Violations

The jurors concluded that thousands of violations occurred, each counted separately to comprise a total penalty of $375 million.

Meta Plans to Appeal

“We respectfully disagree with the verdict and will appeal,” a Meta spokesperson stated. “We operate hard to preserve people safe on our platforms and are transparent about the challenges of identifying and removing malicious actors or harmful content. We will continue to vigorously defend and remain confident in our track record of protecting teens online.”

Meta’s lawyers argued that the company discloses risks and makes efforts to eradicate harmful content and experiences, while acknowledging that some inappropriate material evades its safety filters.

Part of a Wave of Litigation

The New Mexico case is among the first to reach trial in a surge of litigation involving social media platforms and their impact on children.

The trial, which began on February 9th, is one of the first of a wave of lawsuits against Meta, and comes as school districts and lawmakers call for greater restrictions on smartphone use in classrooms.

State Attorneys General Involved

More than 40 state attorneys general have filed lawsuits against Meta, alleging that the company contributes to a youth mental health crisis by deliberately designing features on Instagram and Facebook that are addictive.

Undercover Investigation Uncovered Evidence

The New Mexico case is based on a state undercover investigation in which agents created social media accounts, posing as minors, to document instances of sexual harassment and Meta’s response to them.

The lawsuit, filed in 2023 by New Mexico Attorney General Raúl Torrez, also alleges that Meta has not fully disclosed or addressed the dangers of social media addiction.

Meta Admits to “Problematic Use”

Meta has not acknowledged the existence of social media addiction; however, during the trial, its executives admitted to “problematic use” and stated that their goal is for users to feel satisfied with the time they spend on Meta platforms.

“The evidence shows that Meta invests in safety not just because it’s the right thing to do, but because it’s good for business,” Meta attorney Kevin Huff told the jury during closing arguments. “Meta designs its apps to help people connect with their friends and families, not to facilitate contact with predators.”

Section 230 and the First Amendment

Tech companies have enjoyed legal protection from liability for material posted on their social media platforms, shielded by Section 230 – a 30-year-classic provision included in the US Communications Decency Act – as well as the protection of the First Amendment.

Prosecutors in New Mexico argue that, nonetheless, Meta should be held accountable for its role in disseminating such content through complex algorithms that spread potentially harmful material to minors.

“What this is about is one of the largest tech companies in the world taking advantage of New Mexico teenagers,” Deputy Attorney General James Grayson told the jury during closing arguments, according to the AP.

The jury was comprised of residents of Santa Fe County, including the state capital, a politically progressive city.

Second Phase to Determine Corrective Measures

A second phase of the trial, scheduled for May – and to be held before a judge, without a jury – will determine whether Meta has engaged in a “public nuisance” and whether it should be ordered to rectify its course and bear the costs of corrective measures.

The New Mexico trial examined a large volume of internal Meta correspondence and reports relating to child safety. The jury also heard testimony from Meta executives, platform engineers, former employees who acted as whistleblowers, psychiatric experts, and technology security consultants.

The jury also heard testimony from local public school educators who had to deal with disruptions linked to social media, including sextortion schemes targeting minors.