'Public nuisance': US court orders Meta to pay $567 million in biggest child safety ruling

A court in the US state of New Mexico has ordered Meta to pay an additional $567 million over allegations that it failed to adequately warn users about the risks its platforms pose to children. The ruling, delivered on Thursday, marks the largest financial penalty imposed on the company in a child safety case.

The latest order comes on top of an earlier $375 million fine, taking Meta's total financial liability in the case to $942 million.

Justice Bryan Biedscheid described Meta's platforms as a "public nuisance", comparing their impact to environmental pollution. He directed that the newly imposed amount be placed in a fund aimed at reducing future harm caused to children.

Court compares Meta to a polluting factory

In his order, the judge likened the company to a factory, saying its content and advertising serve as products, while "the psychological harm and sexual exploitation of children" are comparable to pollution that must be addressed.

The lawsuit was filed by the state of New Mexico in 2023. It accused Meta of exposing minors to explicit material and enabling contact with online predators. During the first phase of the trial, the court concluded that Meta had violated the state's Unfair Practices Act by using recommendation algorithms that "steered" young users towards harmful content.

In the second phase, the court ruled that the impact of those harms extended beyond the platforms and amounted to a broader public health concern.

Explaining the reasoning, the judge wrote, "Just as noxious pollution produced by the factory can harm the common public right to reasonably clean air, the harmful effects of Meta’s platforms on children do not stay contained by its platforms and, instead, migrate to the internet as a whole and, perhaps most concerning, to the real world and create a common, societal burden on and harm to the affected children and their families and schools, as well as hospitals and law enforcement."

Meta to appeal, safeguards ordered

Meta said it plans to challenge the decision. A company spokesperson stated, "We disagree with the ruling and will appeal."

The spokesperson added, "We work hard to keep people safe on our platforms and have been transparent about the challenges of identifying and removing bad actors and harmful content. We remain confident in our record of protecting teens online and will continue to defend ourselves against claims that misrepresent the facts."

Along with the financial penalty, the court ordered several safeguards. These include preventing adults from messaging minors, stopping recommendations of underage users to adults, blocking nudity exchanges involving minors and enforcing a "1-strike policy for adult users who engage in child sexual exploitation."

The order also calls for removing "like" counts for users under 18, limiting notifications during school and late-night hours, and capping monthly use of Instagram and Facebook at 90 hours for underage users.