The state of New Mexico has requested that a judge order Meta Platforms to pay between $35 billion and $40 billion in penalties. This request comes after a jury found the company guilty of misleading consumers about the privacy of their data on Facebook. The case is related to the Cambridge Analytica scandal, which involved the harvesting of personal data from millions of Facebook users without their consent.
The lawsuit, filed in 2021, accused Meta of making false statements to Facebook users in New Mexico about data access, hate speech, and internal policies. The company was found to have made 26 out of 29 statements on these issues misleading. The jury also determined that Meta had committed over 43 million violations of New Mexico's consumer protection laws. The judge will decide the financial penalties, with state law allowing up to $5,000 per violation.
Attorneys for New Mexico and Meta clashed over the proposed penalties at a hearing. New Mexico's lawyer, Randi McGinn, argued that a significant payment was necessary to impact the company, suggesting $35-40 billion, which is about 20% of the possible penalties under state law. Meta's lawyer, Matt Nicholson, called the state's request "astronomical" and argued that it would violate constitutional provisions.
Meta had urged the judge to cap penalties at $3.45 billion, arguing that the company does not sell user data and that New Mexico did not prove any consumer was misled. The judge, Francis Mathew, expects to issue a ruling later this month. The case is one of several legal challenges faced by Meta, including a landmark settlement over social media addiction claims.
The Cambridge Analytica scandal involved the harvesting of personal data from up to 87 million Facebook users through a third-party app. The data was used for targeted advertising during Donald Trump's 2016 presidential campaign. The scandal led to widespread criticism of Facebook's data handling practices and calls for greater regulation of social media companies.
The outcome of the case could have significant implications for Meta and the broader tech industry. The company has faced increasing scrutiny over its handling of user data and its role in spreading misinformation. A ruling in favor of New Mexico could set a precedent for future cases involving data privacy and consumer protection.
Meta has faced numerous challenges in recent years, including criticism over its handling of hate speech and misinformation on its platforms. The company has implemented various measures to address these issues, but it continues to face regulatory scrutiny and public pressure to do more to protect users and ensure data privacy.
Key points
- New Mexico requests $35-40 billion in penalties from Meta for misleading consumers about data privacy on Facebook.
- The case is related to the Cambridge Analytica scandal, which involved the harvesting of personal data from millions of Facebook users.
- The judge will decide the financial penalties, with state law allowing up to $5,000 per violation.
