A New Mexico jury on Tuesday determined that Meta knowingly harmed children’s mental health and concealed what it knew about child sexual exploitation on its social media platforms, a verdict that signals a changing tide against tech companies and the government’s willingness to crack down.
The landmark decision comes after a nearly seven-week trial, and as jurors in a federal court in California have been sequestered in deliberations for more than a week about whether Meta and YouTube should be liable in a similar case.
New Mexico jurors sided with state prosecutors who said that Meta — which owns Instagram, Facebook and WhatsApp — prioritized profits over safety, and violated parts of the state’s Unfair Practices Act.
Photo: Nathan Burton, Santa Fe New Mexican via AP
The jury agreed with allegations that Meta made false or misleading statements and also agreed that Meta engaged in “unconscionable” trade practices that unfairly took advantage of the vulnerabilities of and inexperience of children.
Jurors found there were thousands of violations, each counting separately toward a penalty of US$375 million. That is less than one-fifth of what prosecutors were seeking.
Meta is valued at about US$1.5 trillion and the company’s stock was up 5 percent in early afterhours trading following the verdict, a signal that shareholders were shrugging off the news.
Juror Linda Payton, 38, said the jury reached a compromise on the estimated number of teenagers affected by Meta’s platforms, while opting for the maximum penalty per violation.
She said she thought each child was worth the maximum amount, US$5,000 for each violation.
The social media conglomerate would not be forced to change its practices right away. It would be up to a judge — not a jury — to determine whether Meta’s social media platforms created a public nuisance and whether the company should pay for public programs to address the harms. That second phase of the trial is to start in May.
A Meta spokesperson said the company disagrees with the verdict and would appeal.
New Mexico’s case was among the first to reach trial in a wave of litigation involving social media platforms and their effects on children.
More than 40 state attorneys general have filed lawsuits against Meta, claiming it is contributing to a mental health crisis among young people by deliberately designing Instagram and Facebook features that are addictive.
“Meta’s house of cards is beginning to fall,” said Sacha Haworth, executive director of watchdog group The Tech Oversight Project. “For years, it’s been glaringly obvious that Meta has failed to stop sexual predators from turning online interactions into real world harm.”
Haworth pointed to whistle-blowers such as Arturo Bejar, as well as unsealed documents and other evidence, saying it painted a damning picture.
New Mexico’s case relied on an undercover investigation where agents created social media accounts posing as children to document sexual solicitations and Meta’s response.
Tech companies have been protected from liability for content posted on their social media platforms under Section 230, a 30-year-old provision of the US Communications Decency Act, as well as a First Amendment shield.
New Mexico prosecutors said Meta should be responsible for its role in pushing out that content through complex algorithms that proliferate material that is harmful for children.
“We know the output is meant to be engagement and time spent for kids,” prosecuting attorney Linda Singer said. “That choice that Meta made has profound negative impacts on kids.”
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