A New Mexico jury has found Facebook liable for nearly 44 million violations of the state’s consumer protection law, exposing parent company Meta Platforms to potentially massive civil penalties in a case centered on user privacy, data practices and public statements following the Cambridge Analytica scandal.
The verdict, delivered Friday in Santa Fe, found 43,899,725 violations of New Mexico’s Unfair Practices Act. The jury determined liability, while the judge will decide the financial penalties in a later phase of the case. New Mexico is seeking the maximum civil penalty of $5,000 for each willful violation.
Facebook Faces Potential Multibillion-Dollar Penalties
If the court imposed the maximum penalty for every violation, the total could exceed $200 billion. However, the final amount remains uncertain because the judge has discretion over the penalties.
“The verdict marks a significant victory for New Mexico consumers and holds one of the world’s largest technology companies accountable for its conduct,” the New Mexico Department of Justice said following the decision.
The case focused heavily on Facebook’s representations about how it collected, protected, shared and used personal information. Jurors also considered statements concerning third-party applications, misinformation, hate speech and the enforcement of Facebook’s community standards.
Cambridge Analytica Scandal at Center of Privacy Case
The litigation traces back in part to the Cambridge Analytica privacy scandal. Data from tens of millions of Facebook profiles was obtained through a third-party personality quiz and ultimately provided to Cambridge Analytica, a political consulting company that worked with Donald Trump’s 2016 presidential campaign.
New Mexico alleged that Facebook misled consumers about protections surrounding their personal information and about the company’s response to third-party developers that accessed large amounts of user data.
According to the state Justice Department, jurors concluded that Facebook made false or misleading statements assuring consumers they controlled how their information was shared and regarding whether personal information was provided to advertisers or bought and sold.
The jury also found deceptive statements related to Facebook’s investigation of third-party applications after the Cambridge Analytica revelations, including representations concerning audits, developer bans and notifications to affected users.
Meta Disputes Jury’s Findings
Meta rejected the verdict and indicated it would continue defending its record.
“We disagree with the verdict and will continue to defend ourselves against efforts to distort our record,” Meta spokesperson Alex Burgos said in an email.
Facebook’s attorneys argued during the trial that much of the state’s evidence was outdated and defended the company’s efforts to strengthen its policies and enforcement practices.
“Meta’s platforms are forums for free expression. We have a First Amendment right to manage those platforms in a way we believe best serves the interests of our community. This means prioritizing free speech, protecting our users’ information and giving them control over their data,” Burgos said after the verdict.
The state, meanwhile, is seeking both financial penalties and injunctive relief intended to prevent similar practices in the future.
Financial Impact on Meta Remains Uncertain
Despite the extraordinary theoretical maximum penalty, the ultimate financial impact on Meta will depend on the court’s decision.
“It’s unlikely that this is going to be the case that effectively penalizes the company in a meaningful way,” said Peter Ormerod, an associate professor of law at Villanova University.
“There’s been a lot of criticism that none of these amounts of money are enough to discipline the company,” Ormerod said.
The New Mexico case adds to a series of legal challenges involving Meta’s business practices and its Facebook and Instagram platforms.
New Mexico Has Already Secured $942 Million Meta Judgment
In a separate case involving protections for children, New Mexico previously secured judgments totaling $942 million against Meta. That litigation resulted in financial penalties as well as court-ordered safeguards affecting Facebook and Instagram, including stronger age-verification measures and protections for minors.
The latest verdict significantly expands Meta’s potential financial exposure in the state. Unlike the earlier child-safety litigation, this case focuses heavily on representations to consumers about privacy, personal information and Facebook’s response to the Cambridge Analytica controversy.
The jury’s decision establishes liability but does not determine what Meta will ultimately pay. The court must now consider the appropriate civil penalties and New Mexico’s request for additional restrictions on the company’s practices, leaving the final financial consequences of the nearly 44 million violations unresolved.
Charles Dickens is a contributor to Highlands Today, covering news, politics, business, technology, sport, entertainment, and lifestyle. He focuses on clear, accurate reporting and useful information that helps readers stay informed about current affairs and developments affecting their communities. His work highlights relevant stories, emerging trends, and important issues, presenting them in a balanced, accessible, and reader-friendly manner.
