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- calendar_today October 21, 2026
Judge Issues $25 Billion US Penalty Against Meta for Data Privacy Violations
Meta Platforms, the parent company of Facebook, has been ordered by a New Mexico judge to pay $25 billion US following a jury's finding that the company misled consumers about data privacy. The case stems from allegations that Meta allowed a political consulting firm to access the personal data of millions of Facebook users without their consent.
Details of the Verdict and Penalty Reduction
The order was issued on Wednesday by Judge Francis Mathew, who noted in his decision that Facebook's misconduct was conducted systematically and over several years, targeting the core of the company’s business practices. While the judge determined that penalties under state law could have exceeded $219 billion US, he opted to reduce the amount to $25 billion US.
The case centers around Cambridge Analytica, a British political consultancy associated with Donald Trump’s 2016 presidential campaign. The firm reportedly harvested personal data from up to 87 million Facebook users via a third-party application without users’ consent. In response to the ruling, Meta has yet to issue a public statement.
Background: Allegations of Misleading Practices and Consumer Impact
The attorney general of New Mexico filed suit against Meta in 2021 following revelations about Cambridge Analytica’s activities. The lawsuit accused Meta of deceiving New Mexico Facebook users regarding who could access their data, as well as the company’s management of hate speech and misinformation on its platform. According to the state, Meta was aware of the broad access third parties had to user information and tolerated harmful content when it benefited financially.
In the September 25 jury verdict, it was found that 26 of 29 statements made by Meta and its leadership were misleading. Jurors concluded that more than 43 million violations of New Mexico’s consumer protection laws had taken place, corresponding to the number of affected users or residents who saw the misleading statements.
Legal Framework and Penalties
State law in New Mexico allows for penalties of up to $5,000 US per violation, with funds directed towards the state’s school system. After the verdict, Attorney General Raúl Torrez highlighted that these penalties would go towards supporting public education. During court proceedings, lawyers for New Mexico suggested penalties totaling up to $40 billion US, while Meta argued for a $3.45 billion US cap, warning that higher figures could deter businesses from operating in the state.
Previous Rulings Against Meta in New Mexico
This verdict marks the second recent major legal setback for Meta in New Mexico. In an earlier lawsuit decided in March, a Santa Fe jury found that Meta had misled users concerning the safety of young people on its platforms, including Facebook, Instagram, and WhatsApp. That case resulted in a $375 million US civil penalty, followed by an order to pay an additional $567 million US into a mental health fund for teens, along with requirements to implement new safety measures for young users.
Ongoing Legal and Regulatory Scrutiny
The penalty ordered by Judge Mathew underscores the mounting legal scrutiny Meta faces over data privacy and user protection. The company continues to navigate lawsuits and settlements regarding the design and operation of its social media platforms, particularly as they concern the privacy and safety of vulnerable users. The outcome of these cases may have implications for broader debates over social media privacy, consumer protection laws, and data privacy penalties.
Source: cbc.ca.
