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Facebook Faces Massive Penalty Fight After Jury Finds It Deceived Users…

Facebook Faces Massive Penalty Fight After Jury Finds It Deceived Users…
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A New Mexico jury found Facebook liable Friday for deceiving users about privacy protections, handing the social media company another legal setback tied to the Cambridge Analytica data scandal.

According to reporting adapted from the Associated Press, jurors found more than 43 million violations of state consumer protection law. A judge will decide the financial penalty at a later date, with attorneys for the state seeking the maximum $5,000 penalty for each violation.

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Jury Sides With New Mexico

The two-week trial in Santa Fe centered on allegations that Facebook misled users about a breach involving a third-party personality quiz. The quiz harvested data from about 87 million profiles and sold it to the political consulting firm Cambridge Analytica, whose clients included Donald Trump’s 2016 presidential campaign.

The New Mexico Department of Justice called the verdict “a significant victory for New Mexico consumers” and said it held “one of the world’s largest technology companies accountable for its conduct.”

Jurors found that Facebook made deceptive statements about protecting user data that affected New Mexico’s population of more than two million people. They also found the company misled the public about investigations into third-party app developers that harvested user data after the Cambridge Analytica scandal.

Meta Says It Will Keep Fighting

Meta, Facebook’s parent company, disputed the verdict.

“We disagree with the verdict and will continue to defend ourselves against efforts to distort our record,” Meta spokesperson Alex Burgos said in an email.

During closing arguments, Facebook’s lawyers argued that New Mexico relied on outdated evidence and, despite five years to gather material, identified only one other instance of a data breach.

Content Policies Also Examined

The trial also examined Facebook’s policies for removing harmful content. New Mexico argued that the company favored certain accounts and allowed violent or inaccurate content to spread.

Facebook denied those claims, saying its policies have changed since the state filed its lawsuit in 2021 and that it removes 99% of content that violates its standards.

The jury reviewed 34 company statements about data protections and content policies and found deception in almost every case. However, jurors also found the state did not prove Facebook made false claims about removing harmful content, including COVID-19 misinformation.

In a deposition played for jurors, CEO Mark Zuckerberg said the company had robust systems for deciding whether content should be taken down.

During closing arguments, Randi McGinn, an attorney for New Mexico, argued that Facebook profited from harmful content. Company lawyers denied that claim.

“Meta’s platforms are forums for free expression. We have a First Amendment right to manage those platforms in a way we believe best serves the interests of our community. This means prioritizing free speech, protecting our users’ information and giving them control over their data,” Burgos said.

Penalties Still Undecided

The judge has not yet set a hearing to determine penalties. The state will decide where any money goes if penalties are awarded.

New Mexico is also seeking an injunction to stop similar practices in the future.

The case comes after Meta agreed in August to pay up to $18 billion to settle a multistate lawsuit involving child safety issues. That settlement included a release from future liability connected to the Cambridge Analytica privacy breach, leaving New Mexico as the only state to continue pursuing its own case. Florida also declined to sign the settlement, saying it was not tough enough on Meta and leaving open the possibility of future litigation.

New Mexico also won judgments totaling $942 million from Meta this year in a two-phase trial over safety protections for minors. The court ordered Meta to implement new safeguards, including age-verification technology and time limits on its platforms.

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