Meta To Reportedly Pay $375M In Civil Fines For Violating New Mexican Law Against Child Exploitation

• New Mexico Attorney General Raúl Torrez, a Democrat, sued Meta in 2023 after an undercover investigation where a fake social media account for a 13-year-old girl was created.
• Torrez previously told CNBC that the account was "simply inundated with images and targeted solicitations" from child predators.

A New Mexico jury reportedly determined that Meta Platforms (META) broke state law in a lawsuit filed by the state attorney general, who alleged the company misled users regarding the safety of its apps and facilitated child sexual exploitation on its platforms.

The jury concluded that Meta breached New Mexico's consumer protection law and required the company to pay $375 million in civil fines, according to Reuters News. 

Details

The civil trial, which started with opening arguments on Feb. 9 in Santa Fe, focused on claims that Meta violated state consumer protection laws and misrepresented the safety of apps such as Facebook and Instagram to residents.

New Mexico Attorney General Raúl Torrez, a Democrat, sued Meta in 2023 after an undercover investigation where a fake social media account for a 13-year-old girl was created. Torrez previously told CNBC that the account was "simply inundated with images and targeted solicitations" from child predators.

"We respectfully disagree with the verdict and plan to appeal," a Meta spokesperson stated to Reuters. "We strive to protect users on our platforms and are transparent about the difficulties in identifying and eliminating harmful content or bad actors."

“The jury’s verdict is a historic victory for every child and family who has paid the price for Meta’s choice to put profits over kids’ safety,” Torrez said in a statement, according to a CNBC report. 

In recent years, Meta has faced growing criticism about its approach to child and teen safety, partly fueled by whistleblower testimony before Congress in 2021 claiming the company was aware of potential harm from its products but declined to take action.

Retail Reaction

Retail sentiment around META trended in ‘neutral’ territory amid ‘high’ message volume. 

Shares in the company have jumped 10.5% year-to-date. 

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