Meta Platforms ordered to pay $25 billion in New Mexico consumer data protection case

A New Mexico judge has ordered Meta Platforms to pay $25 billion after a jury found that the company misled consumers about its data privacy practices, in a case stemming from allegations that millions of Facebook users' personal information was obtained without their consent, Reuters reported.

Judge Francis Mathew ruled on Wednesday that a penalty exceeding $219 billion was warranted under state law but reduced the amount to $25 billion.

"Facebook's wrongdoing — over the course of years and systematically broadcast to the public — goes to the heart of Facebook's core business practices," Judge Francis Mathew wrote in his order following the verdict.

The lawsuit was filed by New Mexico's attorney general in 2021 following revelations that Cambridge Analytica, a British political consulting firm involved in Donald Trump's 2016 presidential campaign, had harvested personal data from as many as 87 million Facebook users through a third-party application.

The case centres on allegations that Meta misrepresented how it handled users' personal information and addressed harmful content on its platforms.

Jury finds more than 43 million violations

New Mexico accused Meta of misleading Facebook users about who could access their personal data, how the company dealt with hate speech and misinformation, and other internal policies.

The state alleged that Meta knew third parties had extensive access to users' information and tolerated harmful content when doing so benefited its business.

On September 25, jurors found that 26 of 29 statements made by Meta and its leadership on these issues were misleading. They determined that the company had committed more than 43 million violations of New Mexico's consumer protection laws, based on the number of Facebook users or state residents exposed to each misleading statement.

State law permits penalties of up to $5,000 per violation. New Mexico Attorney General Raúl Torrez said after the verdict that the money would go to the state's school system.

State sought up to $40 billion in penalties

At an October 1 hearing, Randi McGinn, a lawyer representing New Mexico, asked Judge Mathew to award the state between $35 billion and $40 billion.

McGinn argued that the amount would be consistent with the jury's verdict and the due process protections provided by the US Constitution.

Meta, however, urged the court to cap the penalties at $3.45 billion, warning that a significantly higher amount could discourage businesses from operating in the state.

In court filings, the company argued that it did not sell users' personal data and that the state had failed to demonstrate that any consumer had actually been misled.

The $25 billion order represents a substantial penalty, although it is below the amount sought by the state's legal team and far lower than the figure the judge said was justified under state law.

Second major legal setback for Meta in New Mexico

The verdict marks the second time in six months that a Santa Fe jury has ruled against Meta in a lawsuit brought by New Mexico.

In the first trial, which concluded in March, jurors found that Meta had misled users about the safety of young people on Facebook, Instagram and WhatsApp. The jury ordered the company to pay $375 million in civil penalties.

Following a second phase of that trial, a judge directed Meta to pay an additional $567 million into a New Mexico fund for teen mental health.

The court also ordered the company to implement measures to protect teenage users of Facebook and Instagram in the state.

The latest ruling adds to Meta's legal challenges over consumer protection, data privacy and online safety, as regulators and governments continue to scrutinise how major technology platforms handle users' information and address harmful content.

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