New Mexico Court Orders Meta to Pay $567M Penalty

Published: August 7, 2026, 3:40 am

A New Mexico state court has issued a significant ruling against Meta, ordering the social media giant to pay $567 million and implement mandatory changes to how its platforms operate for young users. Judge Bryan Biedscheid, presiding in Santa Fe, determined that the company is responsible for creating a public nuisance by harming the mental health of children in the state. This decision follows legal action initiated by New Mexico Attorney General Raul Torrez, who argued that Meta intentionally designed its products to be addictive to minors and failed to provide adequate protections against sexual exploitation.

Under the terms of the $567 million decree, which is set to remain in effect for five years, the court has mandated a series of youth-safety protocols. These include the implementation of monthly usage limits for teens on Facebook and Instagram, stricter controls regarding adult contact with minors, enhanced oversight of AI chatbots, and improved review processes for reports concerning child sexual abuse. Furthermore, the judge ordered the company to delete all accounts belonging to users under the age of 13, along with any personal data collected from those profiles. Additionally, accounts held by teens in New Mexico must now be set to private by default.

This ruling concludes the second phase of the lawsuit, which focused specifically on the public nuisance claim and involved three weeks of testimony without a jury. In an earlier development this March, a jury found that Meta had violated New Mexico's consumer protection laws by misrepresenting the safety of its platforms for young users, resulting in a separate $375 million damages order. In response to the latest judgment, Meta has stated its intention to appeal. The company maintains that it has a strong record of protecting teens online and has vowed to continue defending itself against what it describes as claims that misrepresent the facts. The case is currently being monitored closely by legal observers as various states, school districts, and municipalities across the United States pursue similar litigation aimed at forcing industry-wide changes.

Photo: Collected