Meta has been ordered to pay $375MN in civil penalties after it was found guilty of committing thousands of violations against state consumer protection laws.
A jury in New Mexico concluded on Tuesday that the social media conglomerate was in violation of the state’s Unfair Practices Act, requiring accurate and transparent representations of product safety and user risk.
By eroding customer trust on social platforms, b2b businesses that rely on these communities face reputational risks, customer relationships, and the stability of digital engagement strategies.
In a statement released by the New Mexico Department of Justice, Raúl Torrez, New Mexico Attorney General, argues that this verdict should signal to large tech companies that they are accountable under the law.
“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,” he said.
“Meta executives knew their products harmed children, disregarded warnings from their own employees, and lied to the public about what they knew. Today the jury joined families, educators, and child safety experts in saying enough is enough.
“The substantial damages the jury ordered Meta to pay should send a clear message to big tech executives that no company is beyond the reach of the law. Policymakers and law enforcement officials across the country can help make this verdict a turning point in the fight for children’s safety.”
Allegations of Misleading Safety Practices
In the case of State of New Mexico v. Meta Platforms, Inc, the state filed a lawsuit in 2023 following investigations on how its platforms, including Whatsapp, Instagram, and Facebook, were handling child safety.
These accusations against Meta included misleading users and the public about the safety levels of its platform for young people, failing to implement adequate protections against harmful contact with minors, and prioritizing engagement and growth over safety.
This goes against New Mexico’s Unfair Practices Act, prohibiting businesses from engaging in deceptive, misleading, or unconscionable trade practices that harm consumers.
By failing to disclose known risks and making public statements about platform safety, jurors found Meta’s actions to be misleading.
In conversation with Reuters, a Meta spokesperson said the company disagreed with the verdict and plans to appeal the New Mexico ruling.
How Safety and Transparency Shape Digital Community Experiences
This lawsuit highlights a fundamental risk of customer trust in digital environments, especially for b2b companies that rely on social spaces for product and brand interest.
Trust is fundamental to social and community spaces, supporting participation, sharing, and community building, with users expecting platforms to manage harmful behavior and communicate risks clearly.
Furthermore, social and community spaces depend on consistent safety, accurate information, and predictable platform behavior to ensure customer experiences run smooth.
