A jury finds Meta liable for misleading New Mexico residents about third-party data sharing, content moderation, and more in the Cambridge Analytica scandal

Meta must pay up to $5,000 per violation for past privacy and content policy deceptions.

A jury has found Meta Platforms Inc. liable for deceiving New Mexico residents regarding its data privacy and content moderation policies during the Cambridge Analytica scandal. The verdict, reached on Friday, determined Meta violated New Mexico state law through 34 statements made to the public. The specific number of violations ranges from 1.3 million to 2.1 million, potentially representing the number of Facebook users in New Mexico or the state's total population in 2020. The case will now proceed to a judge to determine civil penalties, which could amount to $5,000 per violation. Meta has stated it disagrees with the verdict and intends to continue defending itself, asserting its First Amendment rights to manage its platforms. New Mexico Attorney General Raúl Torrez led the trial, being the first state law enforcer to take Meta to court over the privacy scandal, which began to unfold in 2018 and involved the improper collection and use of Facebook user data by Cambridge Analytica.

This verdict signals increased legal scrutiny on social media platforms regarding their past statements on data privacy and content moderation, potentially encouraging more states to pursue similar litigation. It also highlights the lingering legal and financial repercussions of the Cambridge Analytica scandal, even years after its initial revelations, suggesting that companies cannot easily move past such events without facing tangible penalties in various jurisdictions.

The potential for substantial civil penalties underscores the financial risks associated with misleading consumers about data practices. For Meta, this trial represents a significant setback, deviating from the broader settlements it has reached with other states and entities, and may set a precedent for how future privacy-related lawsuits are handled, particularly those involving widespread user data and public trust.