A jury in the U.S. state of New Mexico has found Meta Platforms guilty of violating consumer protection laws, marking a major legal and ESG milestone for the social media giant.
The verdict orders Meta to pay $375 million in civil penalties following allegations that it misled users about safety across its platforms — Facebook, Instagram, and WhatsApp — while failing to prevent child sexual exploitation, Reuters news report said.
The decision, delivered after less than a day of jury deliberation, represents the first time a jury has ruled against Meta on such claims. The lawsuit was brought by Raul Torrez, who accused the company of prioritizing profits over the safety of children and families.
Jury Finds Widespread Violations
The jury concluded that Meta engaged in unfair and deceptive trade practices, identifying approximately 75,000 violations of state law. Each violation carried a penalty of $5,000, leading to the $375 million total. The ruling also found Meta’s conduct to be unconscionable, meaning the company knowingly took advantage of users’ lack of awareness about platform risks.
Torrez described the outcome as a “historic victory,” emphasizing that it sends a strong signal to big tech companies that they are not beyond legal accountability.
Meta to Appeal as Legal Pressure Mounts
Meta has rejected the verdict and confirmed plans to appeal, stating it has implemented significant safeguards to protect users. The company maintains that identifying and removing harmful content remains a complex challenge despite ongoing investments in safety systems.
The case adds to a growing wave of legal scrutiny facing Meta, particularly around youth mental health and platform design. Thousands of lawsuits across the United States accuse the company and other social media firms of creating addictive features that contribute to anxiety, depression, and self-harm among young users.
ESG and Regulatory Implications for Big Tech
The verdict underscores intensifying ESG pressures on technology companies, especially in the areas of user safety, transparency, and ethical product design. Governments and regulators are increasingly focusing on how digital platforms impact vulnerable populations, particularly children.
The case originated from a 2023 undercover investigation by New Mexico authorities, which revealed that accounts posing as users under 14 were exposed to explicit content and contacted by adults. Prosecutors argued that Meta failed to implement basic safeguards such as robust age verification and proactive monitoring of predatory behavior.
Next Phase Could Force Platform Changes
A second phase of the trial is scheduled for May, where the court will consider additional remedies. The state is expected to seek mandatory changes to Meta’s platforms, including stronger age verification systems and more aggressive removal of harmful actors, along with further financial penalties.