Meta Ordered to Pay $567M Over Harm to Children’s Mental Health

Key Details of the Ruling

A New Mexico court has ordered Meta, the parent company of Facebook, to pay an additional $567 million into a fund aimed at addressing mental health impacts from its social media platforms. This brings the total amount Meta is responsible for to $942 million. The ruling comes as part of the second phase of a landmark trial that found the company knowingly harmed children's mental health and concealed information about child sexual exploitation.

Details of the Financial Penalties

Judge Bryan Biedscheid stated during the ruling that $420 million would be allocated for treatment services for young people in New Mexico, while the remaining funds will be used for awareness and prevention efforts over the next five years. This decision follows a 2023 Guardian investigation which revealed how Facebook and Instagram had become marketplaces for child sex trafficking.

Reforms Ordered by the Court

In addition to the financial penalties, the court has ordered Meta to implement several changes aimed at enhancing user safety. These include building banner screens on Facebook and Instagram that clearly explain protective features, best practices, and tools for addressing inappropriate content.

Meta's Response and Future Implications

A Meta spokesperson responded by stating the company disagrees with the ruling and plans to appeal. The total amount of $942 million represents a small fraction of Meta's annual profit, which was about $60 billion in 2025. Despite this, it marks another setback for Meta as it faces numerous lawsuits from families alleging harm caused by social media.

The court also ordered Meta to continue improving its age-assurance tools in New Mexico, including using artificial intelligence to determine people's age based on signals such as their friends and posts they share. The company must also develop a dedicated 'under-13-years-of-age prediction model' within the next two years.

Meta has been ordered to request proof of age for Instagram and Facebook users in New Mexico it estimates to be under 13, treating them as such until verified. Additionally, the company must partner with schools or child safety organizations to create a reporting portal where school staff can flag potentially underage users.

While Meta has vowed to appeal, legal experts predict this ruling could set a precedent for future actions against tech giants. Laura Edelson, an assistant professor at Northeastern University focusing on social media and cybersecurity, stated that while America is unlikely to pass a law banning social media entirely, states may continue finding ways to hold companies accountable for their design choices.