A New Mexico judge has ordered Meta to fund a 567 million youth damage repair fund, marking a landmark legal penalty against a major social media platform for creating a public nuisance. According to court documents from New Mexico, the funds will support youth mental health and prevention programs over a five-year period.
The multi-million dollar mandate follows a March ruling where a Santa Fe jury imposed 375 million in civil penalties after finding Meta failed to protect minor users. Meta subsequently appealed that verdict, and company representatives stated they plan to appeal this latest financial order as well.
Court-Ordered Restrictions on Minor Accounts
District Judge Bryan Biedscheid attached a series of operational restrictions to the ruling, which will apply to minor accounts across New Mexico for five years. According to the court order, these measures will remain frozen during the appeal process if Meta posts a bond, and WhatsApp is excluded from the mandates.
The restrictions include a strict monthly limit of 90 hours for combined Facebook and Instagram use by individuals under 18. Additionally, the platform must disable specific notifications for minors between 10:00 PM and 7:00 AM, as well as during school hours throughout the academic year. Platforms must also hide “like” counters by default for younger users.
The judicial order explicitly bans romantic or sexualized interactions between state minors and Meta’s artificial intelligence chatbots. Furthermore, adults are prohibited from using these AI assistants to simulate romantic exchanges involving minor characters.
Additional Safety Mandates and Enforcement Rules
Beyond usage caps and chatbot restrictions, the ruling introduces rigid communication and verification safeguards. Adults cannot message minors who are not already listed in their contacts. The company must implement human reviews within 48 hours for reports concerning sexual exploitation.
Accounts suspected of belonging to children under 13 face permanent deletion within 30 days unless valid age proof is provided. However, Judge Biedscheid rejected requests from New Mexico Attorney General Raul Torrez to mandate strict age verification at sign-up, noting that the federal Children’s Online Privacy Protection Act (COPPA) makes such verification legally impractical. The judge reasoned that imposing unique restrictions exclusively on Meta would simply push young users toward competing platforms.
The court also declined to ban infinite scroll, autoplay videos, or algorithmic recommendation systems. Judge Biedscheid cited First Amendment protections regarding free speech and Section 230 of the Communications Decency Act, which shields platforms from liability for third-party content.
Allocation of the Repair Fund and Broader Legal Landscape
Of the 567 million total, approximately 420 million is earmarked directly for adolescent mental health care services. The remaining funds are allocated for youth screening, prevention initiatives, and program coordination. State prosecutors initially requested 953 million, while Meta argued it owed nothing or, at most, 27 million.
This decision arrives alongside mounting legal pressure nationwide. In March, a Los Angeles jury found Meta and YouTube liable for platform addiction impacts experienced by an adolescent plaintiff. Meta has filed appeals for these verdicts, while upcoming trials loom. A major multi-state lawsuit involving California, Colorado, Kentucky, New Jersey, and Meta is scheduled to begin on August 12 in Oakland, California.