Meta faces trial in New Mexico over undercover investigation

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The first stand-alone trial brought by state prosecutors against Meta is set to get underway in New Mexico, with jury selection beginning Monday.

The case stems from an undercover investigation conducted by the state, which used proxy social media accounts posing as children to document sexual solicitations and Meta’s response. Prosecutors say the findings show systemic failures by the company, which owns Facebook, Instagram and WhatsApp, to protect minors on its platforms.

Legal experts say the case could open a new pathway for states to challenge social media companies using consumer protection and public nuisance laws, rather than focusing directly on user-generated content.

New Mexico Attorney General Raúl Torrez filed the lawsuit in 2023, accusing Meta of creating a “marketplace” and “breeding ground” for predators targeting children for sexual exploitation, while failing to disclose what it knew about the risks.

“So many regulators are keyed up looking for any evidence of a legal theory that would punish social media that a victory in that case could have ripple effects throughout the country, and the globe,” said Eric Goldman, codirector of the High Tech Law Institute at Santa Clara University School of Law. “Whatever the jury says will be of substantial interest.”

Opening statements are scheduled for February 9, and the trial could last nearly two months.

Meta denies the civil charges, accusing prosecutors of taking a “sensationalist” approach. CEO Mark Zuckerberg was initially named as a defendant but has since been dropped, though he has been deposed and is referenced in case documents.

Prosecutors say they are not attempting to hold Meta liable for individual posts, but for how its algorithms amplify and distribute harmful content. They argue this strategy sidesteps protections under Section 230 of the Communications Decency Act and First Amendment safeguards that have historically shielded platforms from liability.

According to the state, undercover investigators created decoy accounts for minors aged 14 and under, documented sexual solicitations and tracked Meta’s responses after the conduct was reported. Prosecutors allege Meta prioritised profits over child safety.

Torrez, a first-term Democrat elected in 2022, has called on Meta to strengthen age verification, remove predatory accounts more effectively and change algorithms that promote harmful material. He has also criticised end-to-end encryption, saying it hampers the monitoring of communications involving children.

Separately, Torrez filed felony charges in 2024 against three men accused of child solicitation using electronic devices, cases that also relied on decoy social media accounts.

Meta maintains that the attorney general is cherry-picking documents and making “sensationalist, irrelevant and distracting arguments.” The company says lawsuits nationwide unfairly blame social media for teen mental health struggles and oversimplify complex issues.

Meta points to expanded safety tools, including content restrictions aligned with PG-13 standards and features that provide teens with more information about who they are communicating with. “If they lose this,” Goldman said, “it becomes another beachhead that might erode their basic business.”

More than 40 state attorneys general have filed lawsuits against Meta, most in federal court, alleging the company harms young people by deliberately designing addictive features. Elsewhere, a bellwether personal injury trial in California involving Meta’s Instagram and Google’s YouTube focuses on claims that early exposure to social media worsened depression and suicidal thoughts. TikTok and Snap Inc. have settled related claims.

A federal trial beginning in June in Oakland will represent school districts suing social media platforms over harms to children. In New Mexico, prosecutors have also sued Snap Inc., alleging its platform facilitates child sexual exploitation. Snap denies the claims, citing built-in safety measures. No trial date has been set.

In the Meta case, a jury drawn from Santa Fe County will determine whether the company engaged in unfair business practices. A judge will later decide potential civil penalties and rule on the public nuisance charge. Under New Mexico’s Unfair Practices Act, penalties can reach $5,000 per violation, though how violations would be calculated remains unclear.

“The reason the damage potential is so great here is because of how Facebook works,” said Mollie McGraw, a plaintiff’s attorney based in Las Cruces. “Meta keeps track of everyone who sees a post. The damages here could be significant.”

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