New York (Dispatches) - A New Mexico court has ordered Meta, the parent company of Facebook and Instagram, to pay $567 million over mental health harms linked to its platforms, after a landmark trial found the company responsible for damaging young users.
The ruling issued on Thursday came during the second phase of a trial in which a jury previously found that Meta knowingly harmed children’s mental health and concealed information about child exploitation risks on its platforms.
The decision brings the total financial penalty against Meta to $942 million after the company was ordered to pay a $375 million fine following the first phase of the trial in March.
New Mexico Judge Bryan Biedscheid ordered that $420 million of the latest payment be used for treatment services for young people, while the remaining funds will support prevention programs, awareness campaigns, screening services, and other measures over five years.
The court also ordered Meta to make changes to Facebook and Instagram, including clearer safety information, improved reporting tools, and educational measures aimed at protecting young users.
The case followed a 2023 investigation into child exploitation on Meta’s platforms, in which former content moderators described instances where harmful material linked to child grooming was reported but not escalated.
During the second phase of the trial, prosecutors called for changes to Meta’s platform design, including restrictions on addictive features, stronger age verification systems, and improved privacy protections for children.
The court ruled that federal privacy laws prevent Meta from requiring age verification for children under 13 but ordered the company to continue improving its age-assurance systems in New Mexico.
Under the ruling, Meta must request proof of age from users it believes are under 13 and treat users as minors until their age is verified, while developing an artificial intelligence model to identify children under 13 within two years.
The company must also establish a reporting system allowing schools and child safety organizations to flag accounts believed to belong to children under 13 and delete personal information collected from such users.
New Mexico Attorney General Raúl Torrez welcomed the ruling, saying it ensured technology companies could not “profit from practices that endanger young people without consequence.”
Meta rejected the decision and said it would appeal, maintaining that it had worked to improve safety on its platforms and protect teenagers online.
The ruling comes as Meta faces further legal challenges across the U.S. over the impact of social media on young users, including cases linking Instagram use to issues such as depression and eating disorders among teenagers.
Last month, Meta, along with TikTok, Snap, and Google’s YouTube, faced a lawsuit from the families of four teenagers who died by suicide, who linked years of escalating harm from the platforms to their deaths.