Friday, 7 August 2026, 22:00
A landmark New Mexico court ruling has added $567 million to Meta's financial exposure for harming young users on Instagram and Facebook. The decision comes as the company prepares for a related trial in Oakland, California, later this month.
Judge Bryan Biedscheid ruled late Thursday that Meta must pay the sum over five years, with $420 million dedicated to treatment services for young people. The remainder will support awareness, prevention, screening and other costs.
The new penalty stacks on the $375 million in civil penalties jurors ordered in March after finding Meta knowingly harmed children's mental health and concealed what it knew about child sexual exploitation on its platforms. Combined, Meta's responsibility in New Mexico totals $942 million, a fraction of its approximate $60 billion annual profit in 2025.
The judge required Facebook and Instagram to build banner and informational screens that regularly explain protection features and tools for addressing inappropriate comments. These changes, along with an educational campaign, will be subject to state review.
On age verification, the court noted federal laws like the Children's Online Privacy Protection Act (COPPA) prevent requiring children under 13 to submit personal data. Instead, Meta must improve its AI-based age assurance tools and attempt to develop an under-13 prediction model within two years.
Meta must also request proof of age for users in New Mexico it estimates to be under 13 and treat them as minors until they verify. The company will create a reporting portal for school staff to flag suspected underage users and delete personal information collected on children under 13. Progress reports are due twice a year.
Meta is gearing up for a federal trial in Oakland, California, later this month. There, it will face the first four of 29 states that sued in a multi-district lawsuit filed in 2023. The states accuse Meta of knowingly designing addictive features on Instagram and Facebook that contribute to the youth mental health crisis.
This California trial is separate from the New Mexico case but stems from similar allegations. Families in California and across the country have filed thousands of lawsuits against Meta over the same issues.
The New Mexico case began as a lawsuit by the state's attorney general, Raúl Torrez, who called the ruling a victory for parents and children. Meta has vowed to appeal, saying it is transparent about challenges and confident in its record of protecting teens. The Oakland trial represents one of the largest state-led legal challenges against social media companies.
The New Mexico ruling signals growing accountability for social media companies, but Meta's appeal and the upcoming Oakland trial will shape the final outcome. California residents, especially families, should watch the federal proceedings closely as they could lead to significant changes in how Instagram and Facebook operate nationwide.
