New Mexico Jury Finds Facebook Liable for Deceptive Practices

A jury in New Mexico decided on Friday that Facebook had misled users regarding the privacy measures on its platform, marking another significant legal blow for the tech giant, which has already faced substantial financial consequences.

The jury identified over 43 million infringements of the state’s consumer protection laws, leaving it to the judge to determine the fines, with state attorneys aiming for the maximum penalty of $5,000 for each violation.

According to the New Mexico Department of Justice, “The verdict represents a major victory for consumers in New Mexico and holds a significant tech company accountable for its actions.”

The trial in Santa Fe stretched over two weeks, focusing on claims that Facebook misrepresented how it handled a data breach linked to a third-party quiz. This breach affected around 87 million user profiles and involved the data being sold to Cambridge Analytica, a political consulting firm that was tied to Donald Trump’s 2016 campaign.

The jury sided with the prosecutors, determining that Facebook’s misleading statements regarding user data protection had ramifications for over two million people in New Mexico. They also found that Facebook had misdirected the public concerning investigations into third-party app developers after the Cambridge Analytica incident.

Facebook Argues Evidence is Outdated

“We disagree with the verdict and will robustly defend ourselves against what we perceive as distortions of our record,” stated Alex Burgos, a Meta spokesperson, via email.

During the closing arguments, Facebook’s attorneys contended that the state’s evidence was outdated, adding that, despite having five years to gather information, New Mexico could only find one additional case of a data breach.

The trial also examined the company’s approach to removing harmful content. New Mexico’s claim suggested that Facebook favored specific accounts, allowing misinformation and violent content to flourish. Facebook countered that it has updated its policies since the lawsuit began in 2021 and reported that it removes 99% of content that breaches its standards.

The jury assessed 34 statements made by Facebook regarding data protection and content policies, concluding that the company had deceived users in nearly every instance. However, jurors did agree on one aspect for the defense: the state had not proved that Facebook had made false claims about removing harmful content related to COVID-19 misinformation.

State Attorney Claims Facebook Profited from Harmful Content

In a deposition played during the trial, CEO Mark Zuckerberg asserted that the company had effective systems to evaluate content for removal. Yet, during the closing arguments, state attorney Randi McGinn asserted that Facebook benefitted financially from harmful content—an argument that the company denied.

“Meta’s platforms serve as arenas for free expression. We maintain our First Amendment right to manage those platforms in a way that aligns with the best interests of our community,” Burgos remarked, emphasizing the balance between free speech and user data protection.

Future Penalties to be Determined

The judge will announce penalties later, but a date for that hearing has not been established. The decision on how the fines will be allocated will rest with the state, which is also pursuing an injunction to prevent similar future practices.

Earlier in August, Meta settled a multistate lawsuit concerning child safety for up to $18 billion. Notably buried in the 130-page settlement was a release of future liability linked to the Cambridge Analytica breach, making New Mexico unique in its choice to pursue an independent case. Florida was the only other state that opted not to sign the settlement, suggesting it didn’t hold Meta accountable enough, which leaves space for more litigation down the line.

This year, New Mexico has already secured judgments from Meta totaling $942 million in a separate two-phase trial focused on the company’s safety measures for minors. As part of that ruling, the court required Meta to enforce new safety protocols, including age verification technologies and time limits for its platforms.