Meta Could Face Billions in Penalties After New Mexico Facebook Verdict

A New Mexico jury has found Facebook liable for tens of millions of violations of the state’s consumer protection law, potentially exposing the social media platform to billions of dollars in fines.

A Santa Fe jury on Friday found Facebook committed over 43.8 million violations of New Mexico’s Unfair Practices Act through false or misleading statements to consumers, according to the state Department of Justice.

“The verdict marks a significant victory for New Mexico consumers and holds one of the world’s largest technology companies accountable for its conduct,” the department said.

The verdict followed a roughly two-week trial stemming from a lawsuit New Mexico filed in 2021 over Facebook’s handling of user data and statements it made to consumers.

The case traces back to the Cambridge Analytica scandal, in which the now-defunct British political consulting firm obtained personal information from as many as 87 million Facebook users and used the data for political profiling and targeted advertising.

New Mexico alleged that Facebook misled users about how their personal information could be shared with third parties and the extent of users’ control over their data.

The state also challenged statements Facebook made after the Cambridge Analytica disclosures. Facebook said it would investigate applications that had obtained large amounts of user information, audit suspicious developers, ban those that misused data, and notify affected users.

Overall, the jury found 26 of the 29 Facebook statements challenged by the state to be misleading. Those statements covered Facebook’s data practices as well as how it handled hate speech, misinformation, and exceptions to its platform rules.

Meta, Facebook’s parent company, disputed the verdict.

“We disagree with the verdict and will continue to defend ourselves against efforts to distort our record,” a Meta spokesperson said in a statement to The Epoch Times.

“Meta’s platforms are forums for free expression. We have a First Amendment right to manage those platforms in a way we believe best serves the interests of our community.

“This means prioritizing free speech, protecting our users’ information and giving them control over their data.”

The size of any penalty has not yet been determined. New Mexico Attorney General Raúl Torrez said the state will seek the maximum penalty of $5,000 for each willful violation.

If imposed across all violations found by the jury, the theoretical maximum would exceed $219 billion. The final amount will be determined by the judge.

The state is also seeking court-ordered changes to Facebook’s practices. Torrez said those could include requiring the company to correct previous statements and undergo an audit of how it manages user data.

The verdict is Meta’s second major courtroom loss in New Mexico this year.

In a separate case involving the safety of young users, a jury in March imposed $375 million in civil penalties. A judge later ordered Meta to pay an additional $567 million to address youth mental health harms and imposed court-supervised changes to Facebook and Instagram, bringing the company’s total financial exposure in that case to $942 million.