Meta ordered to pay $727m by court for kids mental health harms

A New Mexico court has ordered Meta, the parent company of Facebook and Instagram, to pay $727 million to address harms to young people from its platforms, marking a significant escalation in legal challenges against the tech giant over its impact on youth mental health.

The ruling, issued by Judge Bryan Biedscheid, mandates that Meta allocate $420 million toward treatment services for young people, with the remaining funds directed toward awareness, prevention, and screening initiatives over the next five years. This decision comes as the second phase of a landmark trial, following a March ruling in which jurors ordered Meta to pay $375 million in civil penalties for knowingly harming children’s mental health and concealing knowledge about child sexual exploitation on its platforms.

The court’s order also requires Meta to implement sweeping changes, including the creation of informational banners on its platforms to explain safety features and best practices for addressing inappropriate content. The company must also improve age-assurance tools in New Mexico, develop a dedicated “under-13-years-of-age prediction model” within two years, and partner with schools or child safety organizations to establish a reporting portal for users potentially under 13. Additionally, Meta is required to delete personal information collected on users under 13 and report biannually on compliance with the court’s measures.

Despite the financial burden, the penalty represents a fraction of Meta’s annual profit, which totaled $60 billion in 2025. However, the ruling underscores growing scrutiny of tech companies’ role in shaping online environments for minors. New Mexico Attorney General Raul Torrez emphasized the decision’s symbolic weight, stating it sends “an unmistakable message that companies will be held accountable when their product designs knowingly put children at risk.”

Meta has defended its practices, stating in a statement: “We remain confident in our record of protecting teens online and will continue to defend ourselves against claims that misrepresent the facts.” The company also highlighted its ongoing efforts to enhance safety measures, including artificial intelligence-driven age verification and improved privacy settings. However, the court noted limitations imposed by federal law, such as the Children’s Online Privacy Protection Act (COPPA), which restricts Meta from requiring age verification for children under 13.

The ruling adds to a wave of legal challenges against Meta, including a federal trial scheduled for later this month in Oakland, California, where four states will allege the company contributed to a youth mental health crisis through addictive platform designs. Eight other states, including Tennessee, have also filed lawsuits in state courts, while families of four teenagers who died by suicide have sued Meta, TikTok, Snap, and YouTube, citing “years of escalating harms” from social media use.

Legal experts suggest the New Mexico case could set a precedent for future litigation. Laura Edelson, an assistant professor at Northeastern University, noted that while federal bans on social media are unlikely, states are increasingly finding ways to hold companies accountable for harm caused by “product design.” “America is not going to pass a law that bans social media,” Edelson said. “But if companies like Meta know they’re causing harm to users by product design, the states are finally finding a way to rein this in.”

Meta’s legal battles reflect broader tensions over the role of technology in public health. Meanwhile, the company faces pressure to balance innovation with responsibility, as regulators and advocates push for stricter oversight of online platforms. The New Mexico ruling, while not a definitive victory for critics, signals a shift in judicial willingness to challenge tech giants over their societal impact.