Meta ordered to pay $25 billion in New Mexico data privacy case
A New Mexico judge set the penalty after jurors found that Meta misled consumers about its data practices. The company had argued for a much lower cap.
Meta was ordered on October 21 to pay $25 billion in civil penalties in New Mexico after a jury found that the company misled consumers about its handling of user data, CNBC and Reuters reported. The order sets a penalty for more than 43 million violations identified in the state’s case arising from the Cambridge Analytica scandal.
How the New Mexico penalty was set
Jurors in September found Meta liable for misleading New Mexico consumers about how it safeguards and collects their data, according to CNBC. Reuters reported that the September 25 verdict found 26 of 29 statements by the company and its leadership misleading. The jury counted more than 43 million violations of state consumer protection law, leaving the judge to determine the penalty.
State law permits a civil penalty of up to $5,000 for each violation, Reuters reported. CNBC said the court filing showed an award of $219.5 billion before the penalty was reduced to $25 billion. Reuters reported that state lawyers sought $35 billion to $40 billion at an October 1 hearing, while Meta urged the court to cap the penalty at $3.45 billion, arguing that a higher amount could deter businesses from operating in New Mexico.
Meta argued that the evidence showed it did not sell user data and that the state had not proved any consumer was actually misled, according to Reuters. CNBC said it had sought Meta’s comment on the penalty order. The reports establish the order but do not establish that Meta has paid it or whether the company will appeal this penalty.
Why New Mexico’s case went to trial
The state sued in 2021 over Facebook user data practices linked to the Cambridge Analytica scandal, Reuters reported. That scandal centered on allegations that the political consulting firm improperly accessed information from 87 million users, according to CNBC. New Mexico was outside an earlier multistate settlement involving Meta, so its data privacy case proceeded to trial in September. CNBC reported that Meta separately agreed in 2022 to pay $725 million to settle a class action arising from the scandal.
The order follows a separate New Mexico youth safety case against Meta. Reuters reported that a jury in March ordered $375 million in civil penalties in that case. CNBC said a later phase produced an order for Meta to pay $567 million into an abatement fund; Meta said it disagreed with that ruling and planned to appeal it. That stated appeal concerned the youth safety ruling, not the newly reported data privacy penalty.
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Sources and context
- Meta ordered to pay $25 billion penalty in New Mexico Cambridge Analytica caseCNBC
- Meta ordered to pay $25 billion to New Mexico after jury finds company misled consumers about data privacyReuters, republished by Channel NewsAsia
AI-assisted article checked against the listed sources. NewsJaws did not conduct interviews or attend the reported events.