US court orders Meta to set up $567 million special fund

US court orders Meta to set up $567 million fund

A US court in the state of New Mexico has ordered Meta to pay $567 million in fines and impose restrictions on teenagers' use of Facebook and Instagram, The Wall Street Journal reported.

Judge Brian Bidscheid ordered Meta to set up a $567 million fund in addition to the $375 million civil penalty previously imposed by the jury. This brings the total financial obligation imposed on the company to $942 million.

The $567 million fund will be used to mitigate the harm caused by social media to teenagers. According to Reuters, $420 million of it will be spent over the next five years on providing mental health and behavioral health services to young people. The remaining funds will be used for prevention, screening, information campaigns and other measures.

The court's decision was not limited to compensation. The company must limit the use of Facebook and Instagram by teenagers in New Mexico to 90 hours per month. It must also disable push notifications to minors during school hours and at night.

In addition, parental consent will be required for teenagers to see the number of likes on their posts. Artificial intelligence chatbots that communicate sexually with minors will not be allowed, and images that may contain nudity must be blurred. These requirements currently apply only to the state of New Mexico.

Meta said it is dissatisfied with the court's decision and plans to appeal it.

“We are confident in our track record in protecting young people online and will continue to defend ourselves against claims that misrepresent the facts,” a company spokesperson said.

The lawsuit against Meta was filed in 2023 by New Mexico Attorney General Raul Torres, who previously conducted an undercover investigation into fake accounts on social media that posed as children. The lawsuit alleges that Facebook and Instagram failed to adequately protect children from the dangers of sexually explicit material, sexual abuse, and human trafficking.

In March 2026, a New Mexico jury found Meta had misled consumers about the safety of its platforms and put children at risk. The company was fined $375 million for violating the state’s consumer protection laws.

Judge Bidscheid later ruled that Meta’s platforms had caused public harm by inducing users to become addicted and failing to adequately protect them from exploitation. The court also rejected the company’s argument that Section 230 of the U.S. Communications Decency Act would have protected it from liability.

State Attorney General Raul Torres called the ruling a case that could serve as a model for other states.

“New Mexico has paved the way in court. Now there is a roadmap for other states and countries facing a similar crisis to follow,” he said.

According to Reuters, another major federal lawsuit against Meta, involving youth safety, is expected to begin in August.