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New Mexico Jury Weighs Privacy Claims Against Facebook in Landmark Trial

Reported by Tanvi Pillai (Section Editor) · Livemint - Technology ·

Verified — Confirmed by a second source: ABC News - Technology

Confirmed by a second source: ABC News - Technology

Important
New Mexico Jury Weighs Privacy Claims Against Facebook in Landmark TrialRepresentative image · Wikimedia Commons

Attorneys representing New Mexico wrapped up their case against Facebook by accusing the platform of misleading users about data privacy and asking jurors to find the company liable for thousands of state law violations. Jurors reviewed two weeks of evidence to decide if Facebook broke the state's Unfair Practices Act and how many times violations occurred, which will help the judge set financial penalties. New Mexico is the only state to take these data breach claims to trial after 48 other states reached a settlement with parent company Meta earlier this year.

The Core Dispute

The lawsuit focuses on a third-party personality quiz that harvested data from roughly 87 million profiles and sold it to political consulting firm Cambridge Analytica to create targeted ads for clients including the 2016 campaign for Donald Trump. State attorney Randi McGinn argued that Facebook turned user dreams into data to sell to advertisers and failed to properly check third-party apps. Facebook attorney Dane Butswinkas disputed these claims, stating that the platform does not sell user information, investigated suspicious apps, and has greatly improved its privacy safeguards over the last five years.

Testimony and Penalties

The trial included a video deposition from Meta CEO Mark Zuckerberg, who defended company policies regarding content moderation and a special list of accounts that required extra checks before removal. Prosecutors argued this list caused backlogs that let viral content spread widely, while Zuckerberg noted that monitoring content and avoiding the censorship of political speech is a difficult task. New Mexico estimates that about 350,000 residents faced exposure to the Cambridge Analytica breach out of more than 1.3 million state users at the time. The state seeks the maximum civil penalty of up to $5,000 per violation and a court order to stop future data breaches, which could potentially cost the company billions of dollars.

ExplainerWhy this matters

What Happened

New Mexico is pursuing a unique standalone trial against Meta over the Cambridge Analytica data privacy scandal after other U.S. states chose to settle out of court. The trial hinges on whether Facebook violated state consumer protection laws by failing to secure user data from third-party apps.

Why It Matters

This trial represents a rare instance of a state holding a major technology company fully accountable in court rather than through a settlement. A ruling against Meta could set a strong legal precedent for state-level enforcement of data privacy and consumer protection laws, potentially exposing the company to billions of dollars in penalties.

What Happens Next

Following closing arguments, the jury must deliberate on whether Facebook violated state law and determine the number of violations. If the jury finds the company liable, the presiding judge will decide the final financial penalties and whether to issue an injunction against future data practices.

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