Meta Ordered to Pay $25 Billion Over Data Privacy Misconduct
New Mexico court orders Meta to pay $25 billion for misleading users about data privacy, citing Cambridge Analytica scandal.
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A New Mexico judge has ordered Meta to pay a $25 billion penalty for misleading Facebook users about data privacy, a ruling stemming from the Cambridge Analytica scandal from nearly a decade ago. The decision, announced on Wednesday, follows a jury’s finding that Meta violated New Mexico’s unfair practices act over 43 million times.
Jury Finds Systemic Violations
The jury determined that Meta’s actions were not isolated but rather willful and systematic, with senior leadership involved in the deceptive practices. Despite the jury awarding $219.5 billion, the judge reduced the penalty to $25 billion, citing the maximum allowed by the state law.
“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 support the highest level of penalty allowed by the New Mexico Unfair Practices Act – $5,000 per violation found by the jury,” Judge Francis Mathew wrote in the filing.
Interest and Legal Precedents
The judge also ordered that interest on the penalty shall accrue at a rate of 15% annually until the fine is fully paid. This case is seen as a landmark legal development, with legal experts comparing it to a previous settlement with ‘Big Tobacco.’
Earlier this year, a Los Angeles jury found Meta and YouTube liable for a teen’s mental health issues, awarding her $3 million in damages. The plaintiff, a 20-year-old woman, claimed she developed body dysmorphia and had suicidal ideations due to her addiction to Instagram and YouTube.
New Mexico Judge Bryan Biedscheid described Meta as a ‘public nuisance,’ linking its platforms to the mental health crisis among the state’s youth. The ruling highlighted the significant impact of social media on public well-being, emphasizing the need for stricter regulations and accountability.
Source: The Gateway Pundit
