New Mexico jury awards $25bn against Meta for privacy violations

A New Mexico court has ordered Meta to pay a $25 billion penalty after finding the company misled consumers about its data privacy practices. According to CNET, this decision represents one of the steepest corporate payouts ever imposed on a technology firm. The ruling stems from a jury trial that concluded Meta violated the state's consumer protection laws on a massive scale.

The jury determined that Meta was liable for nearly 44 million violations of New Mexico’s Unfair Practices Act. The judge imposed the civil penalty after Meta failed in its attempts to cap the damages at $3.45 billion. Some earlier estimates had suggested the potential liability could have reached $219 billion, making the final figure significantly lower than the maximum possible exposure.

What we know

New Mexico Attorney General Raúl Torrez stated that the penalty order demonstrates real consequences for violating consumer protection statutes. He emphasized that the result shows no corporation is too powerful to avoid accountability. Meta has not yet provided a comment on the ruling, according to CNET. The company may choose to appeal the verdict.

This legal loss follows a series of recent financial penalties for Meta. Just two months ago, the company settled with multiple US states for up to $18 billion regarding claims that its platforms were designed to be addictive and harmful to children. Previously, Meta faced two separate fines in New Mexico, paying $375 million in March and $567 million in August for failing to warn the public about dangers posed by platforms like Instagram.

Earlier, Meta paid $725 million to settle a lawsuit related to the Cambridge Analytica scandal. That incident involved a British consulting firm gaining access to user data, which was credited with helping influence the 2016 presidential election. Despite these substantial payouts, CNET reports that Meta’s privacy practices have not become less provocative, with ongoing scrutiny over products like Muse AI and Meta Glasses.

Defender's checklist

• Review internal data handling policies to ensure they align with current state consumer protection laws.
• Monitor legal filings for updates on potential appeals or changes to penalty caps.
• Audit third-party data sharing agreements to verify compliance with stated privacy practices.
• Prepare communication strategies to address stakeholder concerns regarding large-scale regulatory penalties.

The background in plain language

Organisations must ensure their privacy disclosures match their actual data practices. Misleading users about how information is collected or shared can trigger significant legal liability under consumer protection statutes. Teams usually review marketing materials and privacy policies regularly to prevent discrepancies. Check whether user consent mechanisms are transparent and whether data usage aligns with stated purposes. Consistent alignment between public statements and technical implementation reduces regulatory risk.

Background: Data privacy

Data privacy principles are the rules governing how personal information is collected, used, and stored. They require organisations to limit data collection to what is strictly necessary, keep it secure, and allow users to control their information. Understanding these principles helps you identify when a service respects your boundaries and when it exploits them for profit or surveillance.

Read the full guide: Data Privacy Principles: How to Protect Your Digital Life

What to do and how to stay safe: Meta

• Review your privacy settings on social media platforms to limit data sharing with third parties.
• Read privacy policies carefully to understand how your data is collected and used.
• Enable two-factor authentication to secure your accounts against unauthorised access.
• Monitor news updates for changes in data protection regulations that may affect your rights.

Step-by-step guide: Data Brokers Opt Out: How to Remove Your Personal Information

General security guidance from the TechWire Beat newsroom. It is not confirmed advice from the organisations named in this story.

Frequently asked questions

How much does Meta have to pay?

Meta was ordered to pay a $25 billion civil penalty.

Why was Meta penalised?

A jury found Meta liable for nearly 44 million violations of New Mexico’s Unfair Practices Act for misleading users about data privacy.

Can Meta appeal this decision?

Yes, Meta could appeal the verdict after failing to cap its penalties at a lower amount.