A New Mexico jury has ordered Meta to pay a civil penalty of $25 billion after finding that Facebook misled consumers about its data practices, as well as its handling of hate speech and misinformation. The verdict, reported by Reuters, tallies 43,899,725 violations of the state Unfair Practices Act, though this figure reflects the audience reach of each misleading statement rather than the number of individuals affected.
The judge noted that penalties up to $5,000 per violation could apply, but concluded that a total of $25 billion was warranted to deter continued violations. Meta had argued the statements were taken out of context and defended its position that it did not sell users’ information. The company said it expects to prevail on appeal.
The case centres on what Facebook told users about who could access their information, how much control they had, and how the company enforced its rules. New Mexico’s Department of Justice filed the action in 2021, extending beyond the Cambridge Analytica revelations to challenge representations about data practices and content moderation. The judge cited prior penalties, including a $5 billion FTC settlement in 2019, but noted those did not stop the company from misleading consumers.
The $25 billion penalty is directed to New Mexico’s school system rather than to individual users. Meta’s chief legal officer, C.J. Mahoney, described the suit as an attempt to impose “a tax on speech” and indicated the company would pursue the matter through the appeal process. The broader takeaway is that privacy claims and content controls are being scrutinised in civil actions with substantial penalties.