Meta, the parent company of Facebook and Instagram, has been ordered by a court in the US state of New Mexico to spend $567 million (approximately ₹5,390 crore) on measures aimed at protecting children and improving youth mental health. The order marks the second phase of a landmark legal case in which the company was held responsible earlier this year for the alleged harmful impact of its social media platforms on children and teenagers.
The court found that Meta's platforms had adversely affected the mental health of young users and concluded that the company was aware of the potential risks associated with its services. It also held that Meta had failed to take adequate steps to address risks related to child sexual exploitation and to effectively manage child safety concerns on its platforms.
Earlier, during the first phase of the case, the jury imposed a civil penalty of $375 million on Meta after determining that the company had not taken sufficient action to protect children despite being aware of the potential harms associated with its platforms.
Under the latest court order, $420 million of the total amount will be allocated towards mental health treatment, support services and programmes for children and young people. The remaining funds will be used over the next five years for awareness campaigns, screening services and other initiatives aimed at improving online child safety.
The court also directed Meta to introduce several safety-related changes across Facebook and Instagram. The company has been instructed to regularly display banners and informational screens educating users about safety features, privacy settings and methods to block or report inappropriate comments.
In addition, the court ordered Meta to strengthen its Age Assurance System by enhancing its artificial intelligence-based age estimation technology. The company has been directed to work towards developing a dedicated AI model within the next two years to identify users who may be under the age of 13. If an account is suspected to belong to a child below 13, Meta must seek proof of age and apply protections for minors until the verification process is completed.
However, the court clarified that under the US Children's Online Privacy Protection Act (COPPA), Meta cannot be compelled to carry out mandatory age verification by collecting personal information from children under 13. It also observed that imposing such a requirement exclusively on Meta, while exempting other social media companies, would be unfair.
The order further requires Meta to collaborate with schools and child safety organisations to establish a reporting portal through which school authorities can report accounts suspected of being operated by children under 13. The company has also been instructed to delete personal information collected from users below the age of 13.
Meta has disagreed with the ruling and announced that it intends to appeal the decision. The company said it has continued to invest in making its platforms safer and has already introduced several features designed to enhance online safety for teenagers.
The court has also directed Meta to submit progress reports every six months detailing the implementation of the mandated corrective measures to ensure compliance with the order.
