New Mexico Jury Finds Facebook Liable for Over 43 Million Consumer Protection Violations, Meta Faces Potential $200 Billion Penalty

A New Mexico jury has delivered a significant verdict against Facebook, owned by Meta Platforms, Inc., finding the social media giant liable for over 43 million violations of the state's consumer protection law. This ruling, reached after a two-week trial in Santa Fe, centers on accusations that Facebook engaged in deceptive practices concerning user privacy and the handling of personal data. The potential financial repercussions for Meta are substantial, as attorneys representing New Mexico are seeking the maximum statutory penalty of $5,000 per violation, which could amount to over $200 billion.

The New Mexico Department of Justice characterized the verdict as a "significant victory for New Mexico consumers" and a crucial step in holding "one of the world’s largest technology companies accountable for its conduct." The trial's core allegations revolved around Facebook's alleged deception of users regarding data protection measures, particularly in the wake of a major data breach. This breach originated from a third-party personality quiz application that illicitly harvested data from approximately 87 million user profiles. The harvested data was subsequently provided to Cambridge Analytica, a political consulting firm that utilized this information for targeted advertising campaigns. Notably, Cambridge Analytica's client list included the 2016 presidential campaign of Donald Trump, highlighting the political implications of the data misuse.

Jurors ultimately sided with the prosecution, determining that Facebook made deceptive statements about its commitment to protecting user data, a finding that impacts New Mexico's entire population of over two million residents. Furthermore, the jury concluded that Facebook misled the public about its investigations into third-party app developers that were engaged in the unauthorized harvesting of user data, especially in the aftermath of the Cambridge Analytica scandal. This scandal, which came to light in 2018, significantly damaged Facebook's reputation and led to increased scrutiny of its data privacy practices by regulators worldwide.

Meta, through spokesperson Alex Burgos, has expressed disagreement with the verdict, stating, "We disagree with the verdict and will continue to defend ourselves against efforts to distort our record." During the trial's closing arguments, Facebook's legal team contended that the evidence presented by the state was outdated. They argued that despite having five years to build its case, New Mexico had only presented one additional instance of a data breach beyond the Cambridge Analytica incident. In a partial win for the defense, the jury did not find that Facebook had made false claims regarding its efforts to remove harmful content, including misinformation related to the COVID-19 pandemic. The final determination of the penalty amount now rests with the judge.