Meta Ordered to Pay $25 Billion Penalty for Misleading Facebook Users About Data Privacy

A New Mexico judge on Wednesday ordered Meta to pay a $25 billion penalty for misleading Facebook users about data privacy.

The judgment is related to the Cambridge Analytica data privacy scandal from nearly 10 years ago.

The jury found that Meta had more than 40 million violations of New Mexico’s unfair practices act.

CNBC reported:

Meta was ordered to pay $25 billion in penalties by a New Mexico court on Wednesday as part of a data privacy case that stemmed from the company’s Cambridge Analytica scandal from nearly a decade ago.

The penalty, revealed in a court filing, comes after a jury in a Santa Fe courthouse found in September the social media giant liable for misleading state citizens about how it safeguards and collects user data and prevents harmful information from flourishing on its services.

Although the jury concluded that Meta had over 43 million violations of the state’s unfair practices act, with each transgression carrying a civil penalty as high as $5,000, a New Mexico judge was responsible for determining the ultimate fine. The Wednesday filing showed that the state was awarded $219.5 billion, but the penalty was ultimately reduced to $25 billion.

“The extraordinary number of willful violations found by the jury, the duration and repetition of the conduct, the breadth of subjects on which violations occurred, the involvement of senior Facebook leadership, the size of New Mexico audiences reached, and the clear intentional and systematic nature of Facebook’s repeated misstatements established in the trial record support the highest level of penalty allowed by the New Mexico Unfair Practices Act – $5,000 per violation found by the jury,” New Mexico district court judge Francis Mathew wrote in the filing.

The judge added that interest on the penalty shall accrue at the rate of 15% each year until the fine is paid off in full.

In August, a court ordered Meta to pay $567 million into a fund over child harm.

New Mexico Judge Bryan Biedscheid compared Meta to air pollution and called it a “public nuisance.”

“Although Meta is not alone in this regard, its social media platforms are a significant contributing factor to the current mental health crisis among New Mexico’s youth established by the substantial evidence in this case,” Judge Bryan Biedscheid wrote in the ruling over the summer, CNBC reported.

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Meta Muse Exposes Users’ Personal, Business Secrets When They Share Conversations

Security researchers say Meta’s Muse AI assistant exposed thousands of users’ shared conversations because conversation titles were placed in subdomains that could be discovered through public DNS records. Meta has since suspended the sharing feature while it considers making changes. Ars Technica reports:Like many online services, Muse has allowed users to share searches, conversations, images, and similar content with other people. Such share features usually involve clicking an option to create a unique URL that anyone can use to load a page hosting the content. To keep potentially sensitive information from being accessible to unintended people, the URLs typically contain a long sequence of text that can’t be easily guessed.

Muse, which Meta CEO Mark Zuckerberg said last month was “built from the ground up for privacy and security,” seems to take the same precautions. But a central design decision for constructing URLs has made the links easy to discover. As a result, researchers from security firm Claroc said they were able to enumerate 6,800 links Muse users created for sharing conversations with others. After opening a few hundred of them, the researchers found information that was clearly not intended to be publicly available… […]. “If you had asked us beforehand, we would have guessed that gathering these would take real effort,” the researchers wrote. “It took one query.”

[…] The easiest way to discover the URLs is to perform a passive DNS search through one of many available commercial services. Passive DNS records store the historical resolution of domain names to IP addresses, as well as nameserver, and mail-server records over time. Passive DNS systems typically collect DNS responses from sensors positioned at recursive DNS resolvers or other infrastructure. A passive DNS record is generally created when a monitoring system observes a DNS response. In the case here, once the intended party clicks on the share link, the DNS information is recorded in a searchable database.

Claroc researchers were able to discover the Muse share links because all of them use the domain name cf.metaaiusercontent.com. Discovery is further made easy by the decision to add the conversation name to the URL, along with a long string of text. Simplified examples of such links are home-sale-budget-9f21c8a3.cf.metaaiusercontent.com, q3-revenue-review-7b1e42f0.cf.metaaiusercontent.com, and loan-application-draft-a4c9e2.cf.metaaiusercontent.com. It’s this last design decision, putting the conversation title in the subdomain rather than in the URL path, that makes public discovery possible.

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Florida Seeks Meta ID Checks For All Users

Florida’s attorney general is asking a court to make sure Meta (Facebook and Instagram) puts in place a system to check the age of all its users in that state.

If the court grants the motion, every user in Florida will have to surrender their privacy and will have to verify their age to access speech and, if they are under 14, Meta will have to remove them from the platforms. And if Meta can’t do that within 30 days, it will have to cut off every user under 18 until it implements the age-checking system.

In the meantime, the court is asked to order Meta to set limits on the use of its platforms by teenagers, including hours when they can use them, and features they can access.

“Request proof of age for Instagram and Facebook accounts belonging to users that Meta’s systems know or predict to be under the age of 14, and mark for deletion the accounts of those who do not verify their age within 30 days,” the filing says.

It also wants Meta to “Adopt and apply an age assurance framework to every Teen User.”

It asks Meta to “Treat users who Meta has reason to believe are under 14 or under 18 years of age as under those respective ages unless the users age verify.”

The motion spells it out: “If within 30 days of the entry of this injunction, Meta cannot implement the measures for user-age verification and removal in this and the prior sections, Meta must cease to allow any Young Users access to its Platforms in Florida until these measures are implemented.” Young Users means users under 18.

The default mode for teens should be “quiet mode from 9 p.m. to 8 a.m. year-round, and from 8 a.m. to 3 p.m. on academic-year weekdays”, the filing says. It also wants Meta to hide “like” counts from teenagers by default, disable autoplay and infinite scroll unless a parent turns them on, and limit the time spent on the platforms to “not more than 60 hours per month.”

The motion mentions internal Meta communications, including one that says “IG is a drug” and another that reads, “We’re basically pushers.”

Another employee is quoted as saying about hiding “like” counts, “It’s a social comparison app, fucking get used to it.”

The court is yet to rule on the motion, but Attorney General James Uthmeier announced the filing on X, saying, “We just asked a Florida court to order Meta to turn off the features that addict teenagers and to leave Florida kids alone when they’re in school or sleeping.”

Uthmeier also revealed that Meta tried to get Florida to accept a settlement, but was rebuffed. “Meta tried to get us to take their low-ball settlement, but we wont sell out our kids,” he wrote.

The attorney general’s motion calls the national settlement a “mere slap on the wrist” for a company that is valued at “roughly $1.86 trillion.”

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New Mexico Found a Way to Fine Platforms for Speech It Didn’t Delete

A civil jury has found Meta liable for violating New Mexico’s Unfair Practices Act, and now the judge is being asked to order the company to pay between $35 billion and $40 billion.

At a hearing on October 1 in Santa Fe, special prosecutor Randi McGinn asked Judge Francis Mathew of the First Judicial District Court to order Meta to pay this amount, while a lawyer for the social media giant said such a penalty would be “an astronomical” one, violating “a host of constitutional provisions.”

Meta is being punished for making false statements about user privacy, and also for not removing “hate speech” and “misinformation” fast enough.

The verdict was delivered on September 25, finding Meta had made 26 false or misleading statements, resulting in nearly 43.9 million violations of the state’s Unfair Practices Act.

This would translate to a maximum of $5,000 per violation, or $219 billion in all – more than the $206 billion the tobacco industry had to pay in a settlement in 1998. The state asked for about 20% of this amount.

The number of violations was arrived at by counting the number of people in New Mexico, and the number of Facebook users in the state, and then multiplying these numbers by the number of times Meta made false statements in news outlets and on its own platforms.

The state had to show only that harm was likely, not that it actually occurred.

Meta is being punished for lying about how it handled user data, and the Cambridge Analytica scandal that saw a third party harvest data from about 87 million profiles. The company is also being punished for not removing “hate speech” and “misinformation” fast enough – and the number of violations in this category is about a quarter of the total.

The New Mexico case is not the only one where Meta is being forced to pay up – in March, a Santa Fe jury ordered it to pay $375 million in a case involving child safety on Facebook and Instagram, and in August, the judge in that case added another $567 million for a youth mental health fund.

In August, 47 states reached a settlement with Meta, along with other social media companies, that will see them pay $17 billion. Judge Mathew mentioned this during the October 1 hearing, saying that due process suggests he should opt for a much lower amount than what the state of New Mexico is asking for.

During the hearing, Meta’s lawyer Matt Nicholson described the case as “about 26 statements over 11 years” and said that the state “made absolutely no showing that anyone in the state of New Mexico ever saw them, relied on them or were harmed by them in any way.”

McGinn countered that “the one thing you didn’t hear from counsel is an apology.”

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BEYOND PARODY: Maine Democrat Troy Jackson Booted From Facebook Group Supporting His Campaign

Troy Jackson is the Democrat running for U.S. Senate in Maine who was chosen by party insiders after Graham Platner was forced out of the race over credible accusations of sexual assault.

Jackson has his own issues as a candidate, as he has been accused of some bad behavior in social situations.

Now, Jackson has reportedly been kicked out of a Facebook group that was set up to support his candidacy.

You could not make this up.

Maine Wire reports:

Troy Jackson Gets the Boot From ‘Mainers for Troy Jackson’ Facebook Group

An account bearing Troy Jackson’s name got kicked out of a Facebook group devoted to supporting him after members decided its replies were so insulting they couldn’t possibly have come from their candidate.

Screenshots from “Mainers for Troy Jackson” show members arguing over whether they were dealing with the real Jackson, an impostor or someone else using his account. One member posted images identifying the profile as Jackson’s personal page, complete with a Facebook designation that made for an awkward endorsement: “Former member of Mainers for Troy Jackson.”

According to a Maine Wire investigation, the account profile picture matches the personal profile account Jackson has used for several years.

The dispute comes amid complaints about Washington’s growing influence over the Democratic Senate nominee. In a Sept. 22 New York Magazine report, Rebecca Traister described progressive organizers frustrated as Jackson deferred to national consultants. She reported that local organizers had been sidelined and town halls reworked or canceled. Jackson’s campaign denied screening questions at events and said his positions on ICE, Gaza and Medicare for All had not changed.

Inside the Facebook group, supporters were having trouble recognizing the man whose name was on the door.

“This cannot be Troy speaking. He would not speak so insultingly and patronizingly to regular people let alone supporters,” wrote Carla Poindexter White. “Whoever this is, it is horrifying.”

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Ads Featuring Real Children’s Faces in Sexual AI Videos Persist on Meta’s Platforms

Researchers say more than 250 ads containing AI-generated child sexual abuse material have appeared on Meta’s platforms including Facebook and Instagram since early August, weeks after the company removed dozens of similar ads following reporting from Wired.

Wired reports that the nonprofit Tech Transparency Project says that in early August, Meta deleted roughly 53 ads across Facebook, Instagram and Threads that contained child sexual abuse material, telling the outlet at the time that most of the abusive ads predated the rollout of new AI tools designed to “better detect and block” harmful content. Now, the same watchdog group says ads containing sexual imagery of children are back, some of which are identical to those previously removed.

The problem didn’t stop there. Researchers say Meta has published more than 350 abusive video ads since the end of last year. Many link to so-called “nudification” apps tied to Chinese developers. Unlike the initial batch of 53 ads, the new ones used images of real children, not stock or generic photos.

One ad used an official photograph of a minor from a European royal family, transformed into a video depicting a graphic sex act. Researchers declined to name the royal in order to protect the victim.

“Researchers identified the real-world identities of four minors used in the ads,” according to TTP, whose director is Katie Paul. Three of the four are from the United States. One is a teenager who runs a social media influencer account on a Meta platform. Another is a teen influencer with a public account. The third is a stock photo model, a real person, labeled as “pre-teen” on stock photo websites.

The ads typically open with an innocuous photo of a preteen or teen girl (only one involved a boy), paired with text claiming the image is “not just a photo” and that “there are no restriction” on how it can be used. The videos morph the children’s faces into explicit sexual content, often depicting sex acts. Clicking the ads sends users to download AI face-swapping or video apps from the Apple App Store or Google Play Store. Many carry the tagline: “This is the AI that men actually use.”

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Meta Settlement Ignites Global “Child Safety” Digital ID Push

The ink on the multi-billion dollar settlement agreement that Meta struck with 47 US states, the District of Columbia and a number of US territories has barely had time to dry – and already, officials and campaigners in the US, the EU, the UK, and at the UN are using it to press for similar rules to be imposed elsewhere.

In the UK, Work and Pensions Secretary Pat McFadden said that Meta should apply the new rules in that country as well, while the government there has its own plans to ban social media for under-16s and impose nighttime curfews.

“We don’t want a situation where young people in America have got a higher rate of protection than young people in the UK,” he said.

The British plan is to ban social media for those under 16 by spring 2027, and impose nighttime curfews on older teenagers, the Independent is reporting. To enforce this, platforms will have to know whether a user is a child or an adult, stepping up the pressure on companies to introduce age checks.

In the EU, the Commission is also piling on the pressure on Meta to “export” the US deal.

“We expect adequate management of screen time, appropriate parental controls on these platforms,” said digital spokesperson Thomas Regnier. “It is now up to the company to propose these commitments within the European Union in order to also protect our children here.”

The official revealed that the Commission has already been in talks with Meta since the US agreement was announced, and that the goal is to give children in the EU “at least” the same protections as those in the US.

Meanwhile, UN High Commissioner for Human Rights Volker Türk is using the settlement to call for global protections for children from what he says is the harm caused by excessive social media use.

In the US, District of Columbia Attorney General Brian Schwalb, one of those behind the lawsuit that led to the settlement, said that Meta “will not be the last” company to be forced to agree to such terms.

His California counterpart, Rob Bonta, said that Meta is “not the only player in the industry” to have “visited enormous mental health harms on kids through their products and their designs,” and added, “others rightfully must be held accountable.”

The settlement contains financial incentives for states to bring similar cases against other companies. Snap, TikTok, and YouTube are mentioned by name in this context.

Not everyone is happy with the deal, however. Arturo Béjar, a former Meta employee who was a witness in the trial, said the protections are insufficient and that the product remains harmful.

“The limitations that are in the agreement are the equivalent of saying: ‘Well, you can smoke as many cigarettes as you can in two hours a day,'” he said. “It doesn’t make the cigarettes any safer.”

Meta responded by saying that Béjar is ignoring some of the other provisions of the settlement, such as non-algorithmic feed defaults and stronger parental controls.

“We have a huge raft of built-in protections,” a spokesperson said, and argued that teenagers also derive “substantial” benefits from using social media.

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Mark Zuckerberg’s Meta Calls on YouTube and TikTok to Match Its Teen Safeguards

Mark Zuckerberg’s Meta will pay $18 billion to settle a federal lawsuit accusing it of fueling a teen mental health crisis, but nearly a third of that sum depends on whether TikTok and YouTube agree to adopt the same safeguards. The social media giant is now directly calling on its largest competitors to follow Zuckerberg’s lead.

The settlement announced just days into a trial brought by a coalition of state attorneys general, resolves claims that Meta hooked children on its platforms and ignored the resulting harms, including anxiety, depression and suicide, to protect its profits. Meta will pay 70 percent of the total, about $12.7 billion, upfront. The remaining $5.3 billion only gets released if TikTok and Google’s YouTube together pay a matching $5.3 billion and adopt the same restrictions Meta is imposing on itself.

Those required changes include a one-hour daily usage limit for teens, a “night mode” that blocks access during bedtime hours, and age verification measures. Meta agreed to a two-hour daily limit for teens on Facebook and Instagram, which would drop to one hour if TikTok and YouTube fall in line. The night mode default would block teen access from midnight to 6:00 a.m. Most provisions in the settlement are set to last 10 years.

Meta is also banning filters for “cosmetic surgery and extreme makeup,” removing “Likes” and other reactions from teen posts by default, and strengthening parental oversight tools. The settlement leaves Meta’s recommendation algorithm, the system that decides what content teens see, untouched.

Meta published an open letter calling out its rivals directly, writing that “these protections will only be truly effective if we work with our peers — TikTok and YouTube — to put the same measures in place.” As of Wednesday afternoon, neither company had responded, despite multiple requests for comment. TikTok recently settled a separate, unrelated case with the DOJ for $400 million over children’s privacy.

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Mark Zuckerberg’s Meta Agrees to $18 Billion Settlement with 29 States to End Teen Social Media Addiction Lawsuit

Mark Zuckerberg’s Meta agreed to pay roughly $18 billion to settle a lawsuit brought by 29 states over allegations that Facebook and Instagram harmed children through addictive design.

NBC News reports that the settlement, which still needs a judge’s approval, came one day after Instagram chief Adam Mosseri testified in a California courtroom. Meta CEO Mark Zuckerberg had also been expected to take the stand before the deal was reached.

In a statement, Meta said “the agreement includes a payment of approximately $18 billion, which can be used to fund youth online safety initiatives, among other state priorities.” The company said the deal is part of a broader agreement with 52 attorneys general nationwide, extending well beyond the 29 states that sued in California.

Meta did not concede wrongdoing. A court filing states the company “denies the allegations against it and that it has any liability to the Plaintiffs.”

Attorneys general from California, Colorado, Kentucky, New Jersey and other states had accused Meta of designing addictive products that harmed children and of violating federal privacy and consumer protection laws. Meta pushed back, arguing the states were cherry-picking features while ignoring safety tools it already offers, including teen accounts that default to private, time-limit reminders, parental supervision options, and restrictions on who can contact minors and what content they see.

Under the settlement, Meta will build in daily limits and nighttime blocks for teenage users. The court filing says the company “commits to establishing daily limits and blocks on nighttime use for teenage users.” Teen accounts on Facebook and Instagram will default to a combined two-hour daily use limit, and teens will need parental permission to turn that limit off.

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Meta Whistleblower Testifies Meta Took ‘Don’t Ask, Don’t Tell’ Approach to Child Safety

A former Meta safety engineer told a federal jury this week that company leaders repeatedly received warnings about harm to children on Facebook and Instagram and largely failed to act.

Quartz reports that Arturo Béjar, who worked as a safety engineer at Meta, testified that the company operated under what he described as a “don’t ask, don’t tell” philosophy toward child safety. He said internal studies showed children encountering harmful material at elevated rates, including recommendations that surfaced content from sexual predators and graphic violent images. Béjar said he brought these findings to Facebook and Instagram executives multiple times, and those conversations produced little meaningful change.

Béjar also testified that during his second stint at Meta, from 2019 to 2021, the company replaced the term “addiction” with “problematic use,” a framing he said did not meet the thresholds academic researchers use to define addiction. He said the metrics Meta made public gave a false picture of safety because they measured violations of content policies rather than actual harm experienced by users.

Béjar told the jury that in 2021 he emailed Meta CEO Mark Zuckerberg after Zuckerberg publicly stated that the company does not prioritize profit over safety. “I felt that he created a false and misleading impression of Facebook’s commitment to young people,” Béjar testified. He said he briefed Zuckerberg on product issues at least 100 times during his tenure at the company.

Béjar was the first witness called in the trial, which opened Tuesday in federal court in Oakland, California, before U.S. District Judge Yvonne Gonzalez Rogers. The case was brought by 29 state attorneys general who allege Meta intentionally designed Facebook and Instagram to be addictive to minors, collected data on children under 13 without parental consent in violation of the federal Children’s Online Privacy Protection Act, and misled the public about platform safety. Opening arguments were delivered by lawyers representing California, Colorado, Kentucky and New Jersey.

Meta attorney Paul Schmidt argued that the states had selectively quoted internal documents to build a misleading narrative. He pointed to the company’s safety measures, including parental controls, privacy defaults for teenage users, and reminders encouraging users to limit time on the app.

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