A New Mexico jury has found that Facebook violated the state's Unfair Practices Act (UPA) more than 43 million times, according to the New Mexico Department of Justice.
The verdict in State of New Mexico v. Facebook, Inc. concludes that Meta's social network made misleading statements to consumers in the state about its data practices, and the company now faces civil penalties that could reach billions of dollars.
The case is tied to the Cambridge Analytica scandal, one of the largest privacy cases involving a social network. Meta settled the Cambridge Analytica class action years ago, and the British consulting firm went bankrupt almost a decade ago.
What the New Mexico Jury Found Against Facebook
The jury concluded that Facebook misled New Mexico users about how it handled their personal data. The findings cover these areas:
- misleading statements about how Facebook managed users' personal data
- misrepresenting its business practices with third-party companies, through unfair and deceptive practices that gave advertisers easy access to user data
- profiting from misinformation and hate speech while stating that it was actively removing or combating that content
- statements made after Facebook's internal Cambridge Analytica investigation, including promises to probe third-party apps about their data practices and to conduct forensic audits, which the company failed to fulfill
New Mexico Attorney General Raúl Torrez said the verdict shows that the rules apply to everyone, including Facebook and other large technology companies. The New Mexico Department of Justice described the jury decision as a landmark verdict.
Meta rejected the outcome. A company spokesperson said Meta's platforms are protected by First Amendment rights covering free speech and users' rights over their data, and that the company will defend itself "against efforts to distort our record."
Penalty Phase and What Comes Next for Meta
The jury verdict does not set the amount Facebook must pay. A judge will now decide the penalty for the 43 million UPA violations. State authorities are seeking the maximum civil penalty, which under the UPA can be as high as $5,000 per violation, so the final figure could run into billions of dollars payable to the State of New Mexico.
The ruling follows another loss for Facebook in New Mexico a few months ago. In that earlier case, a jury found that the company operated a service designed to hook younger users on the platform.
For Facebook users, the verdict does not create a claims process or change any account settings. The New Mexico Department of Justice has not announced individual payments, since the penalties sought are civil penalties owed to the state.
New Mexico residents do not need to take any action at this stage, and the outcome of the penalty phase will determine how much Facebook pays the state. The judge has not yet ruled on the penalty amount, and Meta has not said whether it will appeal the jury's verdict.
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