A court in New Mexico has mandated that Meta pay $567 million into a fund to tackle mental health issues allegedly linked to its social media platforms’ effects on children. This ruling follows a jury decision in March that determined Meta had knowingly contributed to the deterioration of children’s mental health and inadequately addressed child sexual exploitation on its platforms. With this latest decision, Meta’s total financial responsibility in the case now amounts to $942 million.
Out of the $567 million awarded, a significant portion—$420 million—will be allocated for mental health treatment services for young people in New Mexico. The remaining funds are designated for prevention and awareness programs, screening services, and other initiatives over the next five years. Additionally, the court has ordered Meta to enhance child-safety measures across Facebook and Instagram.
Meta is required to improve its age-assurance systems, provide clearer information about safety and privacy tools, and develop strategies to identify users potentially under the age of 13. Furthermore, the company must collaborate with schools or child-safety organizations to establish a reporting system for accounts suspected of belonging to users under 13. Meta is also obligated to delete any personal information collected from these users and to submit progress reports twice a year to demonstrate compliance with the court’s directives.
While the court stopped short of mandating universal age verification exclusively in New Mexico due to fairness and existing federal privacy protections for children, the pressure on Meta continues to mount. The company, however, has rejected the ruling and announced plans to appeal, asserting that it actively works to protect users and has made efforts to address harmful content and online safety issues.
This case adds to the increasing legal challenges Meta faces regarding claims that its platforms may contribute to negative impacts on young users. Similar lawsuits are underway in various other U.S. states, highlighting the growing scrutiny over social media’s influence on mental health.