Facebook could face billions of dollars in civil penalties after a New Mexico jury found that the social media platform misled users about its data privacy practices, content moderation policies and response to the Cambridge Analytica scandal.
The September 25 verdict identified 43,899,725 violations of New Mexico’s Unfair Practices Act, according to the state’s Department of Justice. With civil penalties of up to $5,000 per violation, the potential liability could theoretically exceed $219 billion. However, the final penalty will be determined by the judge, and the maximum amount is not guaranteed.
The ruling adds to the legal challenges facing Meta, Facebook’s parent company, over its handling of user information and the transparency of its platform policies.
Credits: SourceNM
Cambridge Analytica Scandal Returns to the Spotlight
The case revisited Facebook’s privacy assurances and its handling of personal information shared with third-party applications. The Cambridge Analytica scandal involved data harvested from as many as 87 million Facebook users through a third-party app, raising questions about how personal information could be accessed and used without users’ meaningful consent.
The New Mexico jury found that Facebook made misleading representations about users’ control over their information and the circumstances under which their data could be shared with third parties.
It also found that the company made deceptive statements about its commitments to investigate applications following the scandal. These commitments included auditing developers, banning those found to have misused personal information and notifying affected users.
The findings extended beyond privacy disclosures. The jury also considered statements concerning misinformation, hate speech and whether Facebook consistently enforced its own content moderation rules.
The case highlights how companies’ public commitments regarding user protection can become a source of legal liability when regulators or consumers challenge whether those assurances match their actual practices.
Meta Disputes the Verdict as Legal Pressure Mounts
Meta disputed the jury’s findings and said it would continue defending itself against what it described as efforts to distort its record. The company’s lawyers argued that statements had been taken out of context, while Meta denied selling users’ personal information.
The dispute leaves the final financial consequences unresolved, with the judge yet to determine the appropriate civil penalties. The theoretical maximum of $219 billion represents the calculation obtained by multiplying the number of violations by the maximum penalty per violation, rather than an amount Meta has been ordered to pay.
The verdict also comes amid continuing scrutiny of how major technology platforms protect users, particularly younger audiences, and manage sensitive personal information.
In a separate development, Meta reportedly agreed to an approximately $18 billion settlement related to teen safety in August. The company has also faced questions about the handling of personal information through its artificial intelligence tools and marketplace services.
Credits: AP News
Facebook Privacy Settlement and AI Concerns
The latest ruling follows an earlier privacy settlement involving Facebook. In September 2025, users began receiving payments from a separate $725 million settlement connected to allegations concerning the company’s data-sharing practices. That settlement is distinct from the New Mexico case and does not determine the outcome of the latest proceedings.
Separately, Meta faced questions after its Muse AI tool reportedly shared a YouTuber’s home address with prospective buyers on Facebook Marketplace. The creator later explained that he had selected a permission setting allowing messages containing his address but expected additional approval before offers were accepted.
The incident raised questions about how AI-powered tools interpret user permissions and handle sensitive information when interacting with other platform features.
For Meta, the New Mexico verdict adds another dimension to the scrutiny surrounding privacy, platform accountability and AI safety. The final penalty in the case remains uncertain, but the proceedings could have significant implications for how technology companies communicate their data protection policies and demonstrate compliance with consumer protection laws.
