Washington, Oct 23:
A New Mexico judge has ordered Meta to pay $25 billion after a jury found the company liable for deceiving users about privacy on Facebook, marking an unprecedented financial penalty for the technology giant.
State District Court Judge Francis J. Mathew said Facebook had intentionally misled users about how the platform handled their personal information. The ruling followed a jury verdict in September that found Meta liable for more than 43 million violations of New Mexico consumer protection laws.
The case centred on allegations that Facebook misrepresented its privacy protections and allowed personal information to be collected through a third-party personality quiz. Data from approximately 87 million profiles was harvested and shared with political consulting firm Cambridge Analytica, which used the information to help target political advertisements during the 2016 US presidential election.
New Mexico Attorney General RaĂșl Torrez said the award sent a strong message to technology companies that they would be held accountable for misleading consumers. The state had sought damages of between $35 billion and $40 billion, arguing that a substantial penalty was necessary to deter similar conduct.
Meta disputed the verdict and the amount of the penalty. Its lawyers argued that the state had not demonstrated that users were harmed by the company’s statements and challenged the method used to calculate the number of violations. The company had previously announced plans to appeal the jury’s decision.
The case proceeded separately after most other US states and territories reached an $18 billion settlement with Meta in August, which included stronger child-safety measures for Facebook and Instagram. New Mexico and Florida did not join that agreement.
Under New Mexico law, money collected through consumer protection penalties is directed towards the state’s education system. However, the funds could remain tied up while Meta pursues its appeal.
The ruling adds to mounting legal scrutiny of major social media platforms over data privacy, consumer protection and online safety. Its final financial impact will depend on the outcome of the appeal and any subsequent changes to the damages calculation.
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