Facebook Faces Major Legal Setback Again
A recent jury verdict in New Mexico has found that Meta, Facebook’s parent company, intentionally misled users over data privacy. The case traces back to the 2018 Cambridge Analytica scandal, when a whistleblower revealed that a UK-based political consulting firm had harvested data from up to 87 million Facebook users through third-party apps. This information was used to build voter profiles and support targeted political advertising for Donald Trump’s 2016 presidential campaign. Cambridge Analytica subsequently collapsed, while Facebook faced billions in fines and settlements.
The state of New Mexico filed a lawsuit against Meta in 2021, alleging that the company failed to disclose how much data third parties could access and neglected to properly investigate data brokers after the scandal broke. After two weeks of trial, the jury concluded on Friday that Meta had knowingly deceived consumers in over 43 million violations, affecting all more than 2 million residents of New Mexico. A judge will now determine the penalty—potentially as high as $5,000 per violation, bringing the theoretical total to $219 billion, an astronomical figure.
Meta has rejected the verdict, asserting it has maintained transparency and plans to appeal. However, New Mexico Attorney General Hector Balderas described the ruling as “historic,” arguing it could compel large tech companies to be held accountable.
This is not Meta’s first legal setback this year. In March, another jury found the company in violation of child safety rules 75,000 times, resulting in a $375 million fine. The judge also labeled Meta’s platform a “public nuisance” and ordered an additional $567 million in remedial measures. Last month, Meta agreed to a settlement of approximately $17 billion with dozens of U.S. states to resolve allegations related to child addiction and public misinformation. TikTok similarly settled a child data issue last month with a $400 million payment. These developments underscore mounting legal pressure on major technology firms regarding data privacy.
Meta’s current finding of deceptive practices is well-earned. Eight years after the Cambridge Analytica scandal, Facebook still has not clearly explained what data third parties can access or how many times user data has been shared. The jury’s determination of 43 million violations across the entire population of New Mexico indicates systemic misconduct rather than isolated incidents.
Even more concerning is that this marks Meta’s third significant legal defeat this year—on child safety, data privacy, and addictive design. While the $17 billion settlement appears staggering, it represents only a fraction of Meta’s financial scale. The deeper question remains: Can fines alter business models? When precision advertising relies on vast troves of personal data, do tech giants have genuine incentives to protect user privacy?
The significance of the New Mexico case lies in its refusal to settle and insistence on judicial review by a jury. It sets a precedent for other states and regulators: large tech companies are subject to scrutiny—not just compliance. The theoretical $219 billion penalty serves as a warning: if courts enforce maximum penalties, Meta’s financial statements could face severe disruption.
Naturally, Meta will appeal, and the final fine is likely to be reduced. Yet the verdict itself sends a clear signal: user data is not a free commodity, and the cost of privacy deception is rising. For ordinary users, this may be the most tangible form of protection yet—making it clear that deception carries real consequences.
Original source: toutiao.com/article/1877440788158528/
Disclaimer: The views expressed in this article are those of the author alone.