Berliner Boersenzeitung - Meta ordered to pay $567 mn in US over 'public nuisance' child harm

The ruling in New Mexico on Thursday adds to a previous fine of $375 million in the same case in March, when a jury found the social media giant liable for making youths vulnerable to predators on its platforms.

While Meta said it would appeal, the decision sets a precedent at a time when dozens of other US states are pursuing lawsuits alleging harms to children and their mental health, including a major trial against Meta set to open in California next week.

"Today's decision is a victory for every parent who has worried about what social media is doing to their child and every child who deserves to grow up safer online," New Mexico Attorney General Raul Torrez said.

"This case has always been about protecting children, standing up for families, and making sure that one of the world's largest technology companies cannot profit from practices that endanger young people without consequence."

It was the first time a US court has found a social media firm guilty of creating a "public nuisance", amid thousands of lawsuits claiming Meta had put children at risk.

Around three-fourths of the $567 million payment ordered Thursday will be earmarked for a mental health treatment fund, to be paid over five years.

The remainder will be allocated to programs for "awareness and prevention" of potential dangers to youths and ensuring Meta implements the ordered changes.

- Limits on 'like' counts -

Judge Bryan Biedscheid said in his ruling that teenagers were particularly susceptible to features designed to capture and boost engagement such as autoplay, infinite scrolling, "like" counts, push notifications and algorithmic recommendations.

He ordered Meta to limit push notifications and usage to 90 hours a month for users under 18, or around three hours daily on average, and to block certain notifications altogether during school hours.

It must also hide "like counts" and pursue efforts to ensure children in New Mexico who are under 13 are not allowed to join Facebook or Instagram.

Meta will also have to provide the court with updates twice a year regarding its efforts to comply.

"We disagree with the ruling and will appeal," Meta told AFP in a statement.

It said it remained "confident in our record of protecting teens online and will continue to defend ourselves against claims that misrepresent the facts".

- More trials loom -

During closing arguments, prosecutor Linda Singer told the jury that Meta had concealed internal findings about the risks to young people, even as its algorithms directed adults toward content posted by teens.

The company had already been found guilty in March of violating New Mexico's Unfair Practices Act by misleading consumers about the safety of its products for children.

More than 30 US states are suing Meta over similar allegations.

In July, a US teenager dropped his lawsuit against Meta just days before the trial was set to begin after confidential settlements with it alongside YouTube, TikTok and Snap.

A first bellwether trial for social media harms on mental health concluded in March, when a Los Angeles jury ordered Meta and Google to pay a 20-year-old woman $6 million.

In May, Meta, Snap, TikTok and YouTube reached confidential settlements with a Kentucky school district.

(Y.Yildiz--BBZ)