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Privacy & Policy

Meta faces $25bn penalty after jury finds it deceived users on data privacy

A New Mexico jury ruled Meta misled users about data protection, resulting in one of the largest fines ever against a tech giant.

Meta faces $25bn penalty after jury finds it deceived users on data privacy
Illustration: Breach Observer

Key points

  • Meta must pay $25 billion after a jury found 43 million violations of state law regarding user data practices.
  • The ruling stems from a decade-long case linked to the Cambridge Analytica scandal and allegations of systematic deception.
  • The company’s legal chief promises to appeal, while the penalty will grow by 15% annually if not paid in full.

Meta Platforms Inc. was ordered to pay $25 billion in penalties after a jury in Santa Fe, New Mexico, found the company had misled its users about how it protects and uses their personal data, according to SiliconANGLE. The verdict concludes a two-week trial that examined the tech giant’s historical data handling practices.

A jury determined that Meta committed 43 million violations of New Mexico’s Unfair Practices Act, leading to an initial award of $219.5 billion that was subsequently reduced by Judge Francis Mathew to the final figure. The judge cited the willful nature of the violations, the involvement of senior leadership, and the systematic misstatements made to users as justification for the penalty.

Context of the ruling

The case traces back ten years to the Cambridge Analytica scandal, when the company operated under the name Facebook Inc. The jury concluded that the firm had deceived users regarding data protection measures over this extended period. This penalty follows other significant financial settlements, including a $17.1 billion agreement in August with multiple US states over claims that Meta deliberately made its products addictive.

Who is affected

The ruling specifically impacts Meta users in New Mexico, where the court found the company’s conduct had reached a broad audience. The state’s attorney general, Raúl Torrez, stated that the result demonstrates that no corporation is too powerful to be held accountable for operating beyond the reach of the law. Meta’s chief legal officer, C.J. Mahoney, disagreed with the finding and promised to win an appeal.

Our take on the response

Meta’s revenue climbed 26% to $64.6 billion recently, suggesting the business continues to operate despite the legal headwinds. The company faces thousands of ongoing court cases related to child safety, privacy, and social media addiction. This latest penalty carries a 15% annual increase for every year it remains unpaid in full, creating a compounding financial pressure if the appeal process is lengthy.

What affected people can do

Users should review their privacy settings to understand how their data is currently being collected and shared. It is advisable to check connected apps and remove any that are no longer used, as these often retain access to personal information. Affected individuals should monitor their accounts for unusual activity and remain vigilant against follow-up scams that may reference this legal case to solicit personal details or payments.

What to do and how to stay safe: Meta

  • Review privacy settings on social media platforms to limit data sharing with third-party applications and advertisers.
  • Audit connected apps and remove permissions for services that are no longer actively used or trusted.
  • Enable multi-factor authentication on accounts to reduce the risk of unauthorized access if data was previously exposed.
  • Monitor financial statements and account login history for signs of compromise or suspicious activity.

Step-by-step guide: Detect Online Tracking: Signs in Logs, Browsers and Network Traffic

General security guidance from the Breach Observer newsroom. It is not confirmed advice from the organisations named in this story.

Frequently asked questions

How much is the fine against Meta?

Meta was ordered to pay $25 billion in penalties after a judge reduced an initial award of $219.5 billion.

Why was Meta fined?

A jury found the company guilty of deceiving users about how it protects and uses their data, committing 43 million violations.

Will the fine increase if not paid?

Yes, the penalty will increase by 15% for every year that it is not paid in full.

Sources

  1. SiliconANGLE

Further reading