Meta ordered to pay $539m for child exploitation

A jury has found Meta violated New Mexico's consumer protection law and enabled child exploitation. Photo: Pexels
A US jury has found Facebook owner Meta Platforms failed to safeguard its apps from child predators, enabling child sexual exploitation.
The case brought by the New Mexico attorney-general accused the company of misleading users about the âsafety of Facebook, Instagram and WhatsApp.
On Tuesday (US time), the jury found Meta violated New Mexicoâs consumer protection law and ordered the company to pay $US375 million ($A539 million) in civil penalties.
âWe respectfully disagree with âthe verdict and will appeal,â a Meta spokesman said.
âWe work hard to keep people safe on our platforms and are clear about the challenges of identifying and removing bad actors or harmful content.â
Representatives for the New âMexico attorney-general did not immediately respond to requests for comment.
The juryâs decision capped a six-week trial and marked the first jury verdict on these claims against the social media company, as it faces a broader challenge over how its platforms affect young peopleâs mental health.
New Mexico Attorney-General RaĂșl Torrez, a Democrat, accused Meta of allowing predators unfettered access to underage users and connecting them with victims, often leading to real-world abuse and human trafficking.
Meta had denied the allegations, saying it had extensive safeguards to protect younger users.
The company has come under increasing scrutiny in recent years over its handling of child and âteen safety, spurred in âpart by whistleblower testimony before the US Congress in â 2021 that alleged Meta knew its products could be harmful but refused to act.
The New Mexico lawsuit grew out of an undercover operation, which Torrez, a former prosecutor, âand his office ran âin 2023.
As part of the case, investigators created accounts on Facebook and Instagram posing as users younger than 14. The accounts received sexually explicit material and were contacted by adults seeking similar content, leading to criminal charges âagainst multiple individuals, according âto Torrezâs office.
The state claims Meta told the public Instagram, Facebook and WhatsApp are safe for New Mexico teens and children, while hiding the truth about how much dangerous and harmful content the company hosts. â
According to the state, internal company documents acknowledged problems with sexual exploitation and mental health harm. Yet the company, the state says, did not institute basic safety tools such as age verification and insisted it was safe.
The state also accused Meta of designing its platforms to maximise engagement despite evidence they were harming childrenâs mental health. Features such as infinite scroll and auto-play videos keep kids on the site, âfostering âaddictive behaviour that can lead to depression, anxiety and self-harm, the lawsuit claims.
New Mexicoâs lawsuit sought âmonetary damages, as well as an order directing Meta to make changes to improve childrenâs safety while using the âplatforms.
âOver the course of a decade, Meta has failed over and over again to act honestly and transparently,â Linda Singer, a lawyer for the state, told the jury during closing arguments on Monday.
âItâs failed to act to protect young people in this state. It is up to you to finish this job.â
Singer told the jury it could award more than $US2 billion ($A2.9 billion) in damages.
Meta has argued it has been transparent about the fact that it cannot catch all the harmful content on its platforms.
âWhat the evidence shows is Metaâs robust disclosures and tireless efforts to prevent harmful content. And these disclosures mean that Meta did not knowingly âand intentionally lie to the public,â Kevin Huff, a lawyer for Meta, told the jury during closing arguments.
-AAP
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