Meta's 'Big Tobacco' Moment? N.M. Trial Could Cost Billions

Meta is currently involved in a significant child safety trial in a New Mexico court. This legal battle centers on accusations that the company failed to adequately protect children on its platforms from predators and misrepresented the harms associated with using apps like Instagram and Facebook. A jury previously ruled in March that Meta willfully violated the state's unfair practices act, resulting in an initial $375 million penalty based on the number of offenses.

The trial is now in its second phase, a juryless bench trial that will span three weeks. During this phase, the court will determine if Meta's practices constitute a public nuisance. If found to be so, the company could be mandated to implement substantial changes to its products. The New Mexico Attorney General's office is seeking approximately $3.7 billion in costs associated with remediation, in addition to injunctive relief that includes extensive modifications to Meta's services within the state.

This case is being viewed by many experts as a pivotal moment for social media companies, drawing parallels to the "Big Tobacco" trials of the 1990s. During that period, tobacco companies faced billions in damages for misleading the public about product dangers, which significantly diminished their influence. Another major social media trial concluded in Los Angeles in March, where Meta and YouTube lost a personal injury case involving a plaintiff who claimed childhood addiction to these platforms.