SANTA FE, N.M. — In a landmark decision targeting the impact of social media on youth, a New Mexico state judge on Thursday ordered Meta Platforms Inc. to pay $567 million to fund treatment and safety initiatives designed to mitigate the mental health harms caused by Instagram and Facebook.
The ruling by Judge Bryan Biedscheid marks the conclusion of the second phase of a high-stakes trial initiated by New Mexico Attorney General Raúl Torrez. The bulk of the penalty — $420 million — will directly fund mental health treatment services for young people across the state. The remaining $147 million is designated for education, screening, prevention programs, and administrative oversight over the next five years.
Thursday’s order builds on a jury verdict from March that required Meta to pay $375 million in civil penalties after finding that the tech giant knowingly designed features that damaged children's mental health while ignoring risks related to child sexual exploitation. Together, the decisions bring Meta’s total financial liability in the New Mexico case to $942 million.
Mandatory Safety Features and Algorithmic Tracking
In addition to the financial penalties, Judge Biedscheid mandated operational adjustments for Meta within the state. Instagram and Facebook must now display regular informational banners clearly explaining privacy settings, safety tools, and reporting mechanisms for harmful comments.
Addressing age-verification challenges, the court noted that federal privacy laws under the Children’s Online Privacy Protection Act (COPPA) prevent states from forcing social media companies to collect additional personal data on children under 13. However, the judge ordered Meta to refine its internal age-assurance systems—including AI-driven prediction models—and require proof of age for users suspected of being under 13. Users whose age cannot be verified must default to strict under-18 privacy settings.
Meta was also ordered to collaborate with local schools and child safety organizations to set up dedicated reporting portals for staff to flag underage accounts.
Meta Vows to Appeal
Following the verdict, Attorney General Torrez hailed the ruling as a crucial precedent for tech accountability.
"Today's decision is a victory for every parent who has worried about what social media is doing to their child and every child who deserves to grow up safer online," Torrez said in a statement.
Meta expressed strong disagreement with the decision and confirmed plans to appeal the court's ruling.
"We work hard to keep people safe on our platforms and have been transparent about the challenges of identifying and removing bad actors and harmful content," Meta said in a statement, defending its safety record.
Mounting Legal Waves Across the Nation
The $942 million penalty represents a tiny portion of Meta’s annual earnings, which reached approximately $60 billion in 2025. Wall Street largely absorbed the news, with Meta’s stock dropping less than half a percent in after-hours trading following the announcement.
However, legal experts emphasize that the New Mexico ruling represents just the beginning of a larger national legal battle. Meta is set to face a multi-state federal trial later this month in Oakland, California, where dozens of state attorneys general have alleged that features like infinite scroll, algorithmic recommendations, and push notifications were intentionally designed to addict young users.
