Meta Found Guilty of Misleading Users on Data Practices in New Mexico Trial
A jury in Santa Fe, New Mexico, ruled that Meta Platforms misled residents about Facebook’s data practices and its enforcement of policies on hate speech and misinformation. The verdict, stemming from a 2021 lawsuit by the state’s attorney general, could result in significant penalties and demands for structural reforms.
Editor, LazyFounders
A jury in Santa Fe, New Mexico, ruled that Meta Platforms misled residents about Facebook’s data practices and its enforcement of policies on hate speech and misinformation. The verdict, stemming from a 2021 lawsuit by the state’s attorney general, could result in significant penalties and demands for structural reforms.
30 SEC SUMMARY
- A jury in New Mexico found Meta Platforms misled residents about Facebook’s data practices and enforcement of hate speech and misinformation policies.
- The lawsuit, filed by New Mexico’s attorney general in 2021, stems from allegations involving Cambridge Analytica’s unauthorized harvesting of user data.
- Jurors ruled 26 of 29 statements identified by the state were misleading, including claims about user data, hate speech, and misinformation.
- Meta faces potential penalties of up to $5,000 per violation for over 43 million violations, with a judge set to determine the final amount.
- This is the second lawsuit in six months where a Santa Fe jury ruled against Meta, following a $567 million penalty for misleading users about teen safety.
TABLE OF CONTENTS
- Jury Finds Meta Misled Users About Data Practices
- Case Stemmed From Cambridge Analytica Scandal
- Jurors Rule on 26 of 29 Statements
- Penalties and Next Steps
- Broader Legal Context
- What this means
- Key takeaways
- FAQ
- Sources
KEY HIGHLIGHTS
- A jury in Santa Fe, New Mexico, found Meta Platforms misled residents about Facebook’s data practices and enforcement of hate speech and misinformation policies.
- The lawsuit, filed by New Mexico’s attorney general in 2021, follows revelations about Cambridge Analytica’s unauthorized data harvesting.
- Jurors determined 26 of 29 statements identified by the state were misleading, including claims about user data sharing and content moderation.
- Meta faces potential civil penalties of up to $5,000 per violation for over 43 million violations, with a judge set to decide the final amount.
Jury Finds Meta Misled Users About Data Practices
A jury in Santa Fe, New Mexico, ruled that Meta Platforms misled residents about Facebook’s data practices and its enforcement of policies on hate speech and misinformation. The verdict follows a two-week trial over a lawsuit filed by New Mexico Attorney General Raúl Torrez in 2021, according to Mint (Technology).
Case Stemmed From Cambridge Analytica Scandal
The lawsuit was initiated three years after reports revealed that Cambridge Analytica, a political consulting firm, harvested personal data from up to 87 million Facebook users without their consent. The state accused Meta of selling user data to third-party apps, including the one used by Cambridge Analytica, and failing to disclose exceptions to its data-sharing policies.
New Mexico argued that Meta prioritized financial gain over user safety by allowing harmful content to spread on its platform.
Jurors Rule on 26 of 29 Statements
The jury found 26 of the 29 statements identified by the state to be misleading. These included claims about how Meta shared user data, enforced hate speech policies, and managed misinformation. However, jurors rejected allegations that Meta misled users about its efforts to remove harmful content and its fact-checking practices.
Meta denied selling user data, a claim the state contested with evidence of data-sharing with third-party apps.
Penalties and Next Steps
Judge Francis Mathew will now determine the civil penalties Meta faces for over 43 million violations. Under New Mexico law, the company could be fined up to $5,000 per violation. Attorney General Raúl Torrez indicated his office will seek the maximum penalty and demand structural changes, including an audit of Meta’s data management practices and corrections to past misstatements.
Broader Legal Context
This verdict is the second in six months where a Santa Fe jury ruled against Meta. In March, the company was ordered to pay $375 million in civil penalties for misleading users about teen safety on Facebook, Instagram, and WhatsApp. A subsequent ruling increased the penalty to $567 million, funding teen mental health initiatives in New Mexico.
While Meta settled a sweeping case with 47 U.S. states, Washington, D.C., and territories—agreeing to pay up to $16.7 billion over claims it designed platforms to addict young users—New Mexico was not part of that settlement. This allowed its lawsuit over Cambridge Analytica to proceed to trial.
What this means
LazyFounders analysis — our interpretation, not reported fact.
This verdict is a significant moment in the ongoing scrutiny of Meta’s business practices, particularly around data privacy and content moderation. For founders and operators, it underscores the risks of opaque data practices and the importance of aligning public statements with internal policies. Regulatory and legal challenges like this one can lead to costly penalties and reputational damage, especially when user trust is already fragile.
The mixed jury findings—rejecting some claims while validating others—suggest that Meta’s practices are not uniformly deceptive but may involve selective transparency. This could embolden other states or regulators to pursue similar cases, particularly if they believe Meta’s policies prioritize engagement and revenue over user safety. For startups in the social media or data-driven space, the case is a reminder to document compliance efforts rigorously and avoid overpromising on content moderation or data protection.
Key takeaways
- Meta Platforms was found to have misled users about its data practices and content moderation policies in a New Mexico court.
- The case highlights ongoing legal and regulatory scrutiny of Meta’s handling of user data and harmful content.
- Jurors rejected some claims about Meta’s efforts to remove harmful content, indicating nuanced findings in the verdict.
- New Mexico’s attorney general plans to seek the maximum penalty and demand structural changes to Meta’s data management practices.
- This verdict follows a broader pattern of legal challenges against Meta, including a recent $567 million penalty for misleading users about teen safety.
FAQ
What did the jury find Meta guilty of?
The jury ruled that Meta misled New Mexico residents about Facebook’s data practices and its enforcement of policies on hate speech and misinformation.
What penalties could Meta face?
Meta could face up to $5,000 per violation for over 43 million violations, though the final penalty will be determined by Judge Francis Mathew.
How does this case relate to Cambridge Analytica?
The lawsuit stems from revelations that Cambridge Analytica harvested data from up to 87 million Facebook users without consent. New Mexico accused Meta of selling user data to third-party apps, including the one used by Cambridge Analytica.
Has Meta faced similar lawsuits before?
Yes. In March, a Santa Fe jury ordered Meta to pay $567 million for misleading users about teen safety on its platforms.
Related on LazyFounders
Sources
- Mint (Technology) · 2026-09-25
Meta misled users about Facebook data practices, New Mexico jury finds
This story is an original summary drafted with AI by LazyFounders from the reporting listed above and checked by automated validation. Facts are attributed to their original publishers; sections marked as analysis are LazyFounders's. Where a source is in another language, facts were machine-translated and quotations are reported, not reproduced. Read the original coverage via the links, and see our AI policy and corrections policy.
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