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New Mexico Jury Finds Meta Misled Users on Data Practices

Reported by Neha Sharma (Staff Writer) · Livemint - Technology ·

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

Confirmed by a second source: ABC News - Technology

Important
New Mexico Jury Finds Meta Misled Users on Data PracticesRepresentative image · Wikimedia Commons

A jury in Santa Fe, New Mexico, found that Meta Platforms misled state residents by giving false information about how it shared user data and handled hate speech and misinformation. The verdict came after a two-week trial in a lawsuit filed by New Mexico's attorney general in 2021, which stemmed from the 2018 discovery that the political consulting firm Cambridge Analytica harvested personal data from up to 87 million Facebook users through a third-party app without consent. New Mexico stated that Meta sold user data to outside parties and allowed harmful content to spread when it helped the company make money, while also misleading users about how it enforced its rules. Jurors reviewed 29 statements identified by the state and found 26 of them to be misleading, though they rejected claims that Meta lied about its fact-checking practices and efforts to remove harmful content. Judge Francis Mathew will now decide on civil penalties after the jury found more than 43 million violations based on the number of affected people. Under state law, the judge can award up to $5,000 for each violation, and the state attorney general said his office will push for the maximum amount. The state will also ask the judge to order Meta to make changes, such as correcting past misstatements and submitting to an audit of its data management. Meta lawyers argued during the trial that the state used cherry-picked snippets that ignored context where the company admitted its handling of privacy and misinformation was not perfect, and the company also denied selling user information. A Meta spokesperson stated the company disagreed with the verdict and plans to keep defending itself, adding that its platforms protect user information and prioritize free expression. This is the second time in six months that a Santa Fe jury has weighed a lawsuit brought by New Mexico against Meta, following an earlier trial where a jury found the company misled users about young user safety and led to large financial penalties and settlements.

ExplainerWhy this matters

What Happened

A New Mexico jury found Meta Platforms liable for misleading users about data privacy and content moderation policies in a lawsuit stemming from the Cambridge Analytica data scandal, opening the door for millions of dollars in civil penalties determined by a judge.

Why It Matters

This verdict highlights the legal risks major technology companies face from state-level regulators over consumer protection and data privacy. Because New Mexico chose not to join a broader multi-state settlement, it pursued its own trial, which could set a strong legal precedent for other states seeking to hold social media platforms financially accountable for how they handle user data and online safety.

What Happens Next

Judge Francis Mathew will review the jury's findings of over 43 million violations to calculate the final civil penalties, with the state pushing for the maximum possible fine. The judge will also consider ordering structural remedies, which could force Meta to issue public corrections and undergo an external audit of its data management practices.

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