A New Mexico judge has ordered Meta Platforms to pay $25 billion after a jury found that the technology company misled consumers about Facebook users’ privacy and the handling of personal information. The case centres on allegations involving Cambridge Analytica, a political consulting firm that obtained data from millions of Facebook users without their consent.
The ruling marks another significant legal setback for Meta, which has faced growing scrutiny over how its platforms collect, protect and manage personal information. It also follows separate legal proceedings in New Mexico concerning the safety of young users on Facebook, Instagram and WhatsApp.
The legal dispute stems from revelations that Cambridge Analytica had obtained personal information from as many as 87 million Facebook users through a third-party application. The firm became widely known for its involvement in political campaigning, including Donald Trump’s 2016 presidential campaign.
The controversy raised questions about how Facebook allowed outside developers to access user information and whether people were adequately informed about how their data could be collected and used.
In 2021, New Mexico’s attorney general filed a lawsuit against Meta, alleging that the company had misled consumers about its privacy practices and the protections available to people using Facebook.
What New Mexico Accused Meta Of
The state argued that Meta had misrepresented several aspects of its operations, including who could access users’ personal information and how the company handled harmful content on its platforms.
Authorities also alleged that Meta knew third parties could obtain extensive amounts of personal data but failed to provide consumers with an accurate understanding of the risks.
The lawsuit went beyond privacy concerns. New Mexico accused the company of misleading users about its response to hate speech, misinformation and other damaging material, arguing that its policies did not always reflect the assurances given to the public.
The state further claimed that Meta tolerated harmful content when doing so served its commercial interests.
Jury Found Millions of Consumer Protection Violations
On September 25, a jury determined that 26 of 29 statements made by Meta and its executives concerning the issues raised in the case were misleading.
The jury also found that the company had committed more than 43 million violations of New Mexico’s consumer protection laws.
The number of violations was calculated using the number of Facebook users or state residents who had been exposed to each allegedly misleading statement. Under New Mexico law, individual violations can carry penalties of up to $5,000.
The potential financial consequences were therefore substantial, with the case involving millions of alleged violations rather than a single instance of misleading conduct.
According to Reuters, the money collected through the penalties will go toward New Mexico’s education system.
Why the Final Penalty Was Lower Than the State Requested
During a hearing on October 1, lawyers representing New Mexico asked the court to impose a penalty ranging from $35 billion to $40 billion.
Meta, meanwhile, argued that the amount should be limited to $3.45 billion. The company warned that a much larger financial penalty could discourage businesses from operating in the state.
Meta also denied selling users’ personal information and maintained that the state had failed to demonstrate that consumers had actually been deceived.
The judge ultimately ordered the company to pay $25 billion, a substantial financial penalty that reflects the scale of the violations identified by the jury.
Meta Faces Another Major Legal Defeat in New Mexico
The $25 billion ruling is the second major legal setback for Meta in New Mexico within six months.
In an earlier case concluded in March, a jury in Santa Fe found that the company had misled users about the safety of young people on Facebook, Instagram and WhatsApp. That proceeding resulted in an order requiring Meta to pay $375 million in civil penalties.
A subsequent phase of the same case led to an additional order requiring the company to contribute $567 million to a New Mexico fund supporting adolescent mental health.
Meta was also required to implement additional safeguards aimed at protecting younger users on Facebook and Instagram in the state.
Together, the cases highlight the range of legal concerns facing the company, from the handling of personal information to the potential impact of its platforms on children and teenagers.
What the Ruling Could Mean for Facebook Users
The latest decision adds to the pressure on Meta to demonstrate that its privacy policies and public statements accurately reflect how its platforms operate.
For Facebook users, the Cambridge Analytica controversy remains a prominent example of the risks associated with sharing personal information on social media, particularly when third-party applications are involved.
The case also illustrates how consumer protection laws can be used to challenge technology companies over their representations to the public. By calculating penalties across millions of alleged violations, regulators can pursue financial consequences that extend well beyond an individual complaint.
Meta’s legal challenges in New Mexico are part of a broader debate about the responsibilities of major social media companies. Questions about data access, transparency, harmful content and the protection of younger users continue to place technology platforms under scrutiny.
The $25 billion order represents a major development in that debate and could reinforce calls for stronger accountability in the way social media companies handle users’ personal information.
