Meta faces $25B NM fine for privacy/hate speech lapses, vows appeal citing unconstitutionality
A New Mexico court has ordered Meta to pay a $25 billion civil penalty after a jury found nearly 44 million violations of state consumer protection laws.
Key points
- A New Mexico judge ordered Meta to pay $25 billion in civil penalties for misleading Facebook users about privacy and hate speech moderation.
- The penalty follows a September jury verdict that found Meta committed nearly 44 million violations of the state’s Unfair Practices Act.
- Meta plans to appeal the decision, arguing the penalty amount is unconstitutional and that no specific harm was proven to New Mexico residents.
Facebook users in New Mexico are at the center of a historic legal penalty against Meta. The company has been ordered to pay $25 billion in civil damages following a state court ruling. This financial consequence stems from findings that the social media giant misled consumers about how it handled their personal data and moderated harmful content. The ruling represents a significant enforcement action under state consumer protection laws.
According to Bloomberg, the penalty addresses specific failures in Meta’s business practices. A jury in Santa Fe previously determined that the company violated New Mexico law nearly 44 million times. These violations relate to representations made to users regarding third-party access to their information. The case also challenged how Meta applied its hate speech rules to high-profile accounts compared to ordinary users.
Legal context and penalty calculation
The financial order was issued by Judge Francis Mathew in New Mexico. He applied the statutory maximum of $5,000 per violation, which would have totaled $219 billion. The judge then reduced the sum to $25 billion. The state had requested between $35 billion and $40 billion in penalties. Meta’s legal team had argued for a maximum of $3.4 billion. The judge stated that the wrongdoing was systematic and went to the heart of the company’s core operations.
Impact on users and state funds
The case originated from the Cambridge Analytica scandal, where a political consulting firm accessed data on up to 87 million users. However, the litigation extended beyond that specific incident to examine broader privacy and content moderation practices. Attorney General Raúl Torrez said the money will go to a state education fund. The sum exceeds the $14.8 billion in general-fund revenue New Mexico expects for fiscal 2028. It is larger than the $18 billion Meta agreed to pay other states over youth harm.
Our take on the response
Meta plans to appeal the decision. Its lawyers argued that a penalty in the tens of billions constitutes a constitutional violation. They also contended that the jury did not find that any specific New Mexico resident saw the misleading statements or suffered harm. The state filed the case in 2021. New Mexico stayed out of group settlements with other states and pursued this litigation independently. The company previously paid $5 billion to the FTC in 2019 and $725 million in a 2022 class action settlement related to Cambridge Analytica.
For customers and users
While this is a legal penalty rather than a data breach, it highlights the importance of reviewing your privacy settings on social media platforms. Check your account settings to control who can see your posts and what information is shared with third-party apps. Review your ad preferences to limit data collection for targeted advertising. Be cautious of scams claiming you are owed money from this settlement, as these are often fraudulent. Verify any communication through official channels before providing personal information or clicking links.
What to do and how to stay safe: Meta
- Review your social media privacy settings to restrict third-party app access and limit the visibility of your personal posts.
- Check your account security settings to ensure two-factor authentication is enabled, protecting your account from unauthorized access.
- Monitor your email for unsolicited messages claiming to be related to this legal settlement, as scammers often exploit high-profile news.
- Keep your software and apps updated to ensure you have the latest security patches and privacy features provided by the vendor.
Step-by-step guide: Data Brokers Examples: How They Collect and Sell Your Personal Info
General security guidance from the DataSafe Radar newsroom. It is not confirmed advice from the organisations named in this story.
Frequently asked questions
How much is Meta ordered to pay in New Mexico?
Meta has been ordered to pay $25 billion in civil penalties for violations of state consumer protection laws.
What violations led to this penalty?
A jury found Meta committed nearly 44 million violations related to misleading users about privacy and handling hate speech.
Will Meta appeal the decision?
Yes, Meta plans to appeal, arguing the penalty is unconstitutional and that no specific harm was proven to New Mexico residents.
