Meta ordered to pay $25 billion in New Mexico privacy case

Summarised from 8 outlets · Updated 21 Oct, 19:39 · Archive

A New Mexico judge has ordered Meta to pay $25 billion following a jury finding that the company misled users about data privacy and content policies.

A New Mexico judge has ordered Meta to pay $25 billion to the state following a jury determination that the company deliberately misled the public about its data privacy practices and content moderation policies on Facebook.

The case originated from the Cambridge Analytica scandal. The British political consulting firm harvested personal data from approximately 87 million Facebook users through a third-party personality quiz application without users' consent. This data was subsequently sold to Cambridge Analytica, which used it to generate targeted political advertisements, reportedly in connection with Donald Trump's 2016 presidential campaign.

New Mexico's attorney general sued Meta in 2021 over the breach. The state alleged that the company had lied to Facebook users in New Mexico about who had access to their data, how the platform handles hate speech and misinformation, and other internal policies. Prosecutors argued that Meta knew third parties had broad access to users' personal information and that the company tolerated harmful content when it benefited its business interests.

In September, a jury found Meta liable for over 43 million violations of New Mexico's consumer protection laws. Jurors determined that 26 of 29 statements made by the company and its leadership regarding data privacy and content moderation were misleading. State law permits penalties of up to $5,000 per violation, which would have totalled $219.5 billion based on the jury's findings.

Judge Francis Mathew reduced the penalty to $25 billion on Wednesday. In his order, Mathew cited 'the extraordinary number of willful violations found by the jury, the duration and repetition of the conduct, the breadth of subjects on which violations occurred, the involvement of senior Facebook leadership' and what he described as 'the clear intentional and systematic nature of Facebook's repeated misstatements'. Communications between senior executives, including Mark Zuckerberg, were 'designed to mislead the public', according to Mathew's filing. Interest on the penalty shall accrue at 15 per cent annually until the fine is paid in full.

New Mexico Attorney General Raúl Torrez characterised the judgment as 'one of the largest, if not the single largest state verdict against a company in American history'. State lawyers had originally sought a penalty between $35 billion and $40 billion, arguing that only a sum substantial enough to impact Meta's stock price would encourage the company to change its behaviour. Meta's legal representatives had countered that the company should pay no more than $3.4 billion, arguing that a larger award would violate due process rights.

Meta has not yet responded to requests for comment on the ruling. The $25 billion fine is the largest penalty the company has faced to date, exceeding an $18 billion settlement agreement with California. All penalty money is directed to New Mexico's school system. Whilst 48 other states previously settled with Facebook in a nationwide case, New Mexico chose to pursue independent litigation.

How it is being reported

• Meta ordered to pay $25 billion in Cambridge Analytica caseA New Mexico judge ordered Facebook's parent company, Meta, to pay $25 billion for misleading users over the Cambridge Analytica breach, which took place during Donald Trump's first presidential campaign.DW News · 21 Oct, 20:27
• Meta ordered to pay $25 billion in penalties over the Cambridge Analytica scandalThe Cambridge Analytica scandal has come back to haunt Meta after a New Mexico judge ordered it to pay $25 billion in penalties for more than 43 million violations of the state's unfair practices law. The ruling marks the biggest legal hit Meta has taken this year, even as it's faced several other losses or […]The Verge · 21 Oct, 20:02
• Meta ordered to pay $25bn to New Mexico in Cambridge Analytica data-privacy caseJury had found Meta misled consumers after Trump’s 2016 presidential campaign obtained user data without consent A judge in New Mexico ordered Meta Platforms to pay $25bn on Wednesday after a jury found the company had misled consumers in a case arising from allegations that a political consulting firm involved in Donald Trump ’s 2016 presidential campaign obtained data from millions of Facebook users without their consent. “Facebook’s wrongdoing – over the course of years and systematically broadcast to the public – goes to the heart of Facebook’s core business practices,” Judge Francis…The Guardian · 21 Oct, 19:34
• Meta ordered to pay $25 billion to New Mexico in data privacy rulingA jury found that the social media company had deceived consumers for years about its data privacy policies.CBS News · 21 Oct, 19:28
• Meta forced to pay $25 billion penalty to New Mexico over Facebook privacy scandalThe breaches stemmed from the harvesting of Facebook user data by political consulting firm Cambridge Analytica to generate targeted political ads for the 2016 electionIndependent Tech · 21 Oct, 19:01
• Meta fined $25bn for 'lies' over user data privacyThe fine is the largest to date against Facebook's owner, larger than an $18bn deal with California.BBC News · 21 Oct, 19:01
• Meta ordered to pay $25B to New Mexico in Cambridge Analytica scandal over user data in 2016 electionThe state's attorney general had sued Meta in 2021 following revelations that Cambridge Analytica, a British political consulting firm, had harvested personal data from as many as 87 million Facebook users through a third-party app.New York Post · 21 Oct, 18:53
• Meta ordered to pay $25 billion penalty in New Mexico Cambridge Analytica caseMeta to pay $25 billion in penalties related to Cambridge Analytica scandal in New Mexico.CNBC · 21 Oct, 18:45

In this story: Meta · Facebook · Cambridge Analytica · New Mexico · Francis Mathew · Raúl Torrez · Mark Zuckerberg

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