A New Mexico state court on Aug. 6 ordered Meta to pay $567 million into a teen mental health fund and change how Facebook and Instagram work for young users for five years. The court found the company created a public nuisance that harmed children.

Meta has pointed to existing teen-focused controls. But the order requires additional measures, including monthly usage limits for teens, tighter restrictions on adult contact with minors, safeguards for AI chatbots.

The case followed a March jury verdict ordering Meta to pay $375 million for violating New Mexico consumer protection law by misrepresenting the safety of Facebook and Instagram for young users.

State prosecutors said Meta’s recommendation systems steered minors toward sexually explicit material and predators, and presented internal research showing that, at one point, 16% of Instagram users reported unwanted nudity or sexual activity in a single week.

Meta said it will appeal. The ruling comes as the company also faces lawsuits by more than 40 states, while similar public nuisance claims have been allowed to proceed in 15 states in federal multidistrict litigation.

🔗 Source: Reuters

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