Aug 9, 2026

Meta Fined $567 Million in New Mexico Over Teen Safety and Child Exploitation Risks

8 August, 2026, 2:07 pm

A New Mexico court has ordered Meta to pay $567 million to a state fund for teen mental-health initiatives after finding that Facebook and Instagram contributed to harmful conditions for young users and failed to adequately protect children from exploitation.

The ruling came in a lawsuit brought by New Mexico Attorney General Raul Torrez against Meta, the parent company of Facebook and Instagram. The case alleged that the platforms were designed in ways that encouraged excessive use among younger users while failing to provide adequate safeguards against sexual exploitation and inappropriate interactions involving children.

Santa Fe Judge Brian Biedscheid ruled that Meta’s platforms contributed to conditions that harmed public health in New Mexico. The court’s latest financial penalty is separate from an earlier $375 million penalty imposed on Meta following a jury decision in March for violations of the state’s consumer-protection laws.

Together, the two rulings bring Meta’s financial liability in the New Mexico case to approximately $942 million.

New restrictions for users under 18

In addition to the financial penalties, the court ordered significant changes to how Facebook and Instagram operate for users under 18.

The measures include limiting minors to a maximum of 90 hours of monthly use, disabling notifications during school hours and overnight, strengthening age-verification procedures and increasing safeguards against unwanted contact between adults and children.

The restrictions are expected to remain under court supervision for five years.

The court also ordered Meta to ensure that its artificial-intelligence-powered chatbots do not engage in sexual or romantic conversations with minors. Additional safeguards, including measures to blur suspected nude images, were also included in the ruling.

Meta plans to appeal

Meta has rejected the court’s findings and said it plans to appeal the decision.

The company has argued that it has invested significantly in protecting teenagers online and that the allegations against its platforms do not accurately reflect the company’s existing safety measures.

The New Mexico ruling currently applies directly within the state. However, its potential significance extends beyond New Mexico.

More than 40 states and over 1,300 school districts have reportedly filed lawsuits involving social-media companies over issues including children’s safety, mental health and alleged harmful platform design.

The New Mexico decision could therefore become an important development in the growing legal and political debate over how social-media companies should protect children and teenagers online.

The case also highlights increasing scrutiny of the technology industry’s use of algorithms, recommendation systems and artificial intelligence in products used by minors.

As Meta prepares to appeal, the outcome could have broader implications for the company’s operations and for similar lawsuits being pursued against major social-media platforms across the United States.