A New Mexico jury on Tuesday found Meta Platforms violated state law in a lawsuit brought by the state attorney general, who accused the company \u200bof misleading users about the safety of Facebook, Instagram and WhatsApp and of enabling child sexual exploitation on those platforms. After deliberating for less than a day, the jury found that Meta violated New Mexico\u2019s \u200cconsumer protection law and ordered the company to pay $375 million in civil penalties. The verdict marks the first time a jury has ruled on such claims against Meta, as the company faces a wave of lawsuits over how its platforms affect young people\u2019s mental health. \u201cWe respectfully disagree with the verdict and will appeal,\u201c a Meta spokesperson said in a statement. \u201cWe work hard to keep people safe on our platforms and are clear about the challenges of identifying and removing bad actors or harmful content.\u201d In a statement, New Mexico Attorney General Ra\u00fal Torrez, a \u200bDemocrat, called the verdict \u201ca historic victory for every child and family who has paid the price for Meta\u2019s choice to put profits over kids\u2019 safety.\u201d \u201cThe substantial damages the jury ordered Meta to pay should send a \u200bclear message to big tech executives that no company is beyond the reach of the law,\u201d he said. In a second phase of the trial in May, Torrez said \u2060his office will ask the court to order Meta to make changes to its platforms to protect children and to impose additional financial penalties. Meta shares were up 0.8% in after-hours trade following the verdict. The state had asked the jury to award \u200bmore than $2 billion in damages. META FACES BROAD CHALLENGE RELATED TO YOUTH MENTAL HEALTH The jury\u2019s decision capped a six-week trial in Santa Fe. Torrez had accused the company of allowing predators unfettered access to underage users and connecting them with victims, often leading \u200bto real-world abuse and human trafficking. \u201cOver the course of a decade, Meta has failed over and over again to act honestly and transparently,\u201d Linda Singer, an attorney for the state, told the jury during closing arguments on Monday. \u201cIt\u2019s failed to act to protect young people in this state.\u201d Meta denied the allegations, saying it has extensive safeguards in place to protect younger users. \u201cWhat the evidence shows is Meta\u2019s robust disclosures and tireless efforts to prevent harmful content. And these disclosures mean that Meta did not knowingly and intentionally lie to the public,\u201c Kevin \u200bHuff, an attorney for Meta, told the jury on Monday. Reuters viewed the trial on Courtroom View Network. Meta has come under increasing scrutiny in recent years over its handling of child and teen safety, spurred in part by whistleblower testimony before Congress \u200bin 2021 that alleged the company knew its products could be harmful but refused to act. Separately, Meta is facing thousands of lawsuits accusing it and other social media companies of intentionally designing their products to be addictive to young people, leading to a \u200cnationwide mental health \u2060crisis. Some of the lawsuits, which have been filed in both state and federal courts, seek damages in the tens of billions of dollars, according to Meta\u2019s filings with financial regulators. A state court jury in Los Angeles is currently deliberating in the first trial over the addiction claims. Meta has argued the company is shielded from liability in both the addiction and the New Mexico lawsuits by the free-speech protections of the US Constitution\u2019s First Amendment and Section 230 of the Communications Decency Act, which generally bars lawsuits against websites over user-generated content. The company has said the state\u2019s allegations of harm cannot be separated from the content on the platforms, because its algorithms and design features serve to publish content. The judge in New Mexico \u200brejected Meta\u2019s arguments on Section 230, allowing the case \u200bto go to trial. NEW MEXICO\u2019S INVESTIGATIONThe New Mexico lawsuit \u2060grew out of an undercover operation, which Torrez, a former prosecutor, and his office ran in 2023. As part of the case, investigators created accounts on Facebook and Instagram posing as users younger than 14. The accounts received sexually explicit material and were contacted by adults seeking similar content, leading to criminal charges against multiple individuals, according to Torrez\u2019s office. The state \u200bclaims Meta told the public that Instagram, Facebook and WhatsApp are safe for New Mexico teens and children, while hiding the truth about how much dangerous and harmful content \u200bthe company hosts. According to the \u2060state, internal company documents acknowledged problems with sexual exploitation and mental health harm. Yet the company, the state says, did not institute basic safety tools such as age verification and insisted it was safe. The state also accused Meta of designing its platforms to maximise engagement despite evidence that they were harming children\u2019s mental health. Features such as infinite scroll and auto-play videos keep kids on the site, fostering addictive behaviour that can lead to depression, anxiety and self-harm, the lawsuit claims. On Tuesday, the jury found \u2060that Meta had \u200bviolated the state\u2019s consumer protection law by knowingly engaging in an unfair or deceptive trade practice. The jury also found that the company\u2019s actions \u200bwere unconscionable, meaning Meta knowingly took advantage of a lack of knowledge in New Mexico residents. The jury found 75,000 violations and awarded $5,000 per violation. In May, Judge Bryan Biedscheid is slated to hold a trial without a jury on the state\u2019s claims that Meta created a public nuisance that harmed state residents\u2019 \u200bhealth and safety. The state will ask Biedscheid to direct Meta to make changes to its platforms, including adding effective age verification and removing predators, it said Tuesday.<\/p>\n","protected":false},"excerpt":{"rendered":"
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