Why Was Meta Ordered To Pay USD 567 Million? Court Finds Facebook, Instagram Harmed Children
A New Mexico court ordered Meta to pay USD 567 million after ruling that Facebook and Instagram harmed children's mental health and failed to protect minors from exploitation. Here's what the judgment means.
A New Mexico court has ordered Meta, the parent company of Facebook and Instagram, to pay USD 567 million after finding that the social media giant created a "public nuisance" by exposing children to harmful and addictive platform features while failing to adequately protect them from s*xual exploitation.
Judge Bryan Biedscheid ruled that Meta's platform design contributed to addictive use among minors and increased risks to children's mental health and online safety. The decision came in the second phase of a landmark lawsuit filed by New Mexico Attorney General Raul Torrez.
What Happened in the First Phase of the Trial?
In March, a jury found Meta liable for violating New Mexico's consumer protection law by misrepresenting the safety of Facebook and Instagram for young users. Meta Ordered to Pay USD 567 Million Over Online Mental Health Harm to Kids Linked to Instagram and Facebook.
Jurors concluded that the company knowingly harmed children's mental health and concealed what it knew about child s*xual exploitation on its platforms, reported BBC. Meta was ordered to pay USD 375 million in civil penalties during that phase of the case.
How Will the USD 567 Million Be Used?
According to the court order:
- USD 420 million will fund treatment services for young people.
- The remaining amount will support awareness campaigns, prevention programmes, screening services and other child protection initiatives over the next five years. WhatsApp Introduces Parent Controlled Accounts for Kids Under 13: Know How To Set It Up and Other Details.
What Changes Must Meta Make?
Along with the financial penalty, the court directed Meta to implement several youth safety measures, including:
- Monthly limits on teenagers' use of Facebook and Instagram
- Restrictions on notifications for young users
- Stronger controls on contact between adults and minors
- Additional safeguards for AI chatbots
- Enhanced review of reports involving child s*xual abuse
However, the court declined to require stronger age verification, noting that the federal Children's Online Privacy Protection Act (COPPA) limits how companies can collect personal information from children under 13.
Will Meta Appeal the Decision?
Yes. Meta said it plans to appeal the ruling, arguing that it has invested heavily in protecting teenagers and removing harmful content.
The company said it remains confident in its efforts to improve online safety and will continue to challenge claims that it believes misrepresent the facts.
The ruling adds to Meta's growing legal challenges over child safety in the United States. Similar lawsuits are pending in several states, and another major trial involving the company is scheduled to begin in California.
(The above story first appeared on LatestLY on Aug 07, 2026 09:29 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
