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New Mexico seeks up to $40bn in penalties from Meta over privacy claims

Engadget ·

New Mexico is seeking $35 billion to $40 billion in penalties from Meta after a jury found the company misled residents about privacy and misinformation. The request follows the Cambridge Analytica scandal and aims, according to the state’s attorney, to impose a penalty large enough to affect the company.

The jury found that 26 of 29 Meta statements examined were misleading and identified 43 million alleged violations of the state’s consumer protection laws. Its verdict could have allowed penalties of up to $219 billion. Meta argues the state did not prove residents were misled and has asked for a $3.45 billion cap; the judge is expected to decide later this month.

  • New Mexico wants Meta to pay up to $40 billion.
  • A jury found 43 million alleged consumer law violations.
  • Meta is asking the judge to cap penalties at $3.45 billion.

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Meta is the technology company that owns Facebook and Instagram, the world's largest social media platforms. New Mexico has pursued a legal case against Meta, alleging the company made false or misleading statements to residents about protecting their personal information and handling misinformation—false or misleading information spread online.

The case reflects broader concerns about social media companies' data practices. These concerns were intensified by the Cambridge Analytica scandal, revealed in 2018, when a political consulting firm was found to have improperly accessed personal data from millions of Facebook users without their permission. The incident raised questions about what tech companies know about their users and whether they protect that information properly.

Tech companies increasingly face legal challenges about their public statements and business practices, particularly around user privacy and content moderation. This case is significant because it tests whether Meta can be held accountable for what it tells users about these issues, potentially setting a precedent for similar cases against other technology firms.

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Originally published by Engadget as “New Mexico wants Meta to pay $40 billion in penalties for Cambridge Analytica scandal”.