US Court Orders Meta to Pay $567 Million Over Children’s Mental Health Claims

US Court Orders Meta to Pay $567 Million in Child Safety Case, Company to Appeal

A court in New Mexico, US, has ordered Meta to pay an additional $567 million after finding that the company failed to adequately warn users about the risks its social media platforms pose to children. The latest ruling marks one of the largest financial penalties imposed on the tech giant in a child safety case.

The order, issued by Judge Bryan Biedscheid, comes on top of an earlier $375 million penalty, taking Meta’s total financial liability in the case to $942 million.

Court Compares Meta to a ‘Polluting Factory’

In his ruling, Judge Biedscheid likened Meta’s platforms to a factory whose products and algorithms generate harmful consequences for children.

The court said Meta’s recommendation systems and advertising practices contributed to exposing minors to harmful content and sexual exploitation, comparing those effects to pollution that spreads beyond the company’s platforms and impacts society at large.

According to the judgment, the psychological harm suffered by children extends beyond the internet, placing a burden on families, schools, healthcare systems and law enforcement agencies.

Case Originated From 2023 Lawsuit

The case stems from a lawsuit filed by the State of New Mexico in 2023, which accused Meta of exposing children to explicit content and facilitating contact with online predators.

During the first phase of the trial, the court ruled that Meta violated the state’s Unfair Practices Act, finding that its recommendation algorithms directed young users toward harmful material.

In the second phase, the judge concluded that the resulting harm amounted to a broader public health issue, warranting substantial financial penalties and additional safeguards.

• Meta to Challenge Verdict
• Meta has said it will appeal the ruling.

In a statement, a company spokesperson said Meta disagrees with the court’s findings and maintains that it has invested heavily in protecting young users.

The company added that it continues to improve its safety systems, remove harmful content and combat child exploitation across its platforms, while arguing that the judgment does not accurately reflect its efforts.

New Safety Measures Ordered

Along with the financial penalty, the court directed Meta to introduce stricter protections for minors on Facebook and Instagram.

Under the order, the company must:

• Prevent adult users from sending messages to minors.
• Stop recommending underage users’ accounts to adults.
• Strengthen measures to detect and block the exchange of explicit images involving children.
• Enforce a “one-strike” policy against adults found engaging in child sexual exploitation.
• Hide “like” counts for users under 18.
• Restrict notifications during school hours and late at night.
• Limit usage by underage users to 90 hours per month across Facebook and Instagram.

The court also directed that most of the $567 million penalty be placed into a fund supporting mental health treatment, behavioural health services and programmes aimed at preventing online harm, while the remaining amount will be used for awareness campaigns and training for teachers and healthcare professionals.

The ruling adds to the growing legal and regulatory scrutiny Meta faces worldwide over child safety and the impact of social media on young users.