A jury in New Mexico has found Meta, the parent company of Facebook, in violation of the state’s Unfair Practices Act in connection with the Cambridge Analytica scandal. This ruling could potentially cost Meta over $219 billion in civil penalties.
Meta Found Liable for Violating New Mexico Law
In a significant legal development, a jury in the U.S. state of New Mexico has determined that Meta Platforms Inc. violated state law concerning unfair competition. The verdict, announced on September 25th, stems from the fallout of the Cambridge Analytica data scandal, where the personal information of millions of Facebook users was improperly harvested.
The jury found Meta responsible for over 43.8 million violations of New Mexico’s Unfair Practices Act. Under this state law, each violation can carry a maximum penalty of $5,000. This staggering number of violations translates into a potential civil penalty exceeding $219 billion, which is approximately 1.47 trillion Chinese Yuan at current exchange rates.
Allegations of False and Misleading Statements
The New Mexico jury concluded that Meta made false and misleading statements regarding its practices for collecting, protecting, and sharing consumer personal information. Furthermore, the company was found to have made similar deceptive statements about its efforts to prevent the spread of misinformation and hate speech on its platform.
The jury’s findings indicate a deep distrust in Meta’s handling of user data and its content moderation policies.
The verdict also addressed Meta’s response following the exposure of the Cambridge Analytica scandal, stating that the company’s own investigative statements were intentionally deceptive.
New Mexico’s Unique Position
It is noteworthy that New Mexico is one of only two jurisdictions in the United States that did not join the broader settlement agreement reached between Meta and various other states and Washington D.C. over the Cambridge Analytica data breach. Washington D.C. is the other region that opted out of this prior settlement.
This decision by the New Mexico jury sets a significant precedent and highlights the ongoing scrutiny Meta faces regarding its data privacy practices and platform integrity. The substantial potential fine underscores the gravity of the violations found by the court.
