Meta ordered to pay $25bn in New Mexico consumer protection case

Ars Technica ·

A New Mexico judge ordered Meta to pay $25 billion after a jury found it committed nearly 44 million violations of state consumer protection law. The ruling found that Meta repeatedly misled users about control of their data and other platform practices over more than 11 years; the company says it will appeal.

The penalty followed Meta’s $18 billion settlement with attorneys general from nearly all other states, which New Mexico Attorney General Raúl Torrez declined to join. The judge said previous penalties had not deterred Meta, and approved the highest level allowed under state law; New Mexico had sought up to $40 billion. Legal experts said Meta may have a chance to reduce the award on constitutional grounds.

In short

  • Meta faces a $25 billion penalty in New Mexico.
  • A jury found nearly 44 million consumer law violations.
  • Meta plans to appeal the ruling.

Steelman: both sides, in good faith

The strongest fair case each way — we don't pick a winner.

The case for

The award can be defended as a proportionate response to repeated violations over many years, especially if earlier penalties failed to deter the conduct and affected users were misled about their data and the platform’s practices. Applying the maximum allowed by state law may signal that consumer protection rules carry real consequences, while recognising the scale and duration of the alleged harm.

The case against

A $25 billion penalty may be excessive, particularly when legal experts say it could raise constitutional concerns and the company has grounds to appeal. A very large award could exceed what is needed for deterrence or accountability, with uncertain consequences for the company, its users and future enforcement; the earlier multistate settlement also suggests there may be less punitive ways to resolve such cases.

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Originally published by Ars Technica as “Meta shocked by $25B fine after N.M. refused to join multistate settlement”.

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