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New Mexico court orders Meta to pay $25 billion over misleading users on data privacy
En breve
A New Mexico court has ordered Meta to pay a $25 billion civil penalty in a case over misleading users about data privacy and consumer protection violations, Russian outlets reported on 21 October. A jury had found nearly 43.9 million willful violations of state law, and the judge cut the calculated penalty of about $219.5 billion to $25 billion.
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A court in the US state of New Mexico has ordered Meta to pay a civil penalty of $25 billion in a case over the systematic deception of users and violation of consumer protection law. RIA Novosti reported this on 21 October, citing the court order it had obtained. TASS and vc.ru also reported the $25 billion penalty, and Kommersant said the court found Meta lied to and misled users about the privacy of their data and what the company did with it. [ 1 , 2 , 3 , 4 ]
According to RIA Novosti, the order awarded the state a civil penalty of $219,498,600,000 and reduced it to $25 billion. That sum was calculated at the rate set by law of $5,000 for each willful violation the jury found. Judge Francis Mathew also ordered Meta to pay interest at 15% a year until the debt is paid in full. Kommersant likewise said the court could have fined the company $219 billion under state law but imposed $25 billion. [ 2 , 4 ]
The order rests on a jury verdict. RIA Novosti reported that jurors found Meta guilty of almost 43.9 million willful violations of the state's unfair trade practices law between May 2010 and August 2021. The case concerned 26 public statements by the company's management, including by Sheryl Sandberg, about user control over personal data, the investigation of leaks through third-party apps after the Cambridge Analytica scandal, and problems of moderation and disinformation. Kommersant said the court found Meta lied or misled in 26 of the 29 statements examined and that, in the court's assessment, key business practices as well as data handling were built on lies. [ 2 , 4 ]
Kommersant quoted New Mexico prosecutor Raul Torres (Рауль Торрес) as saying this is one of the largest, if not the largest, single fine against a company in the US. RIA Novosti's headline called the fine a record. [ 2 , 4 ]
Kommersant said the case is one of those linked to the Cambridge Analytica scandal, which broke in 2018 when it emerged that Meta had passed to that company, which it described as linked to Donald Trump's campaign team, the data of 87 million users. The state's prosecutor filed the lawsuit in 2021. Kommersant added that Meta is recognised as extremist and banned in Russia. The documents give no reaction from Meta. [ 3 , 4 ]
Por qué importa
New Mexico's attorney general said it is one of the largest single fines against a company in the US, if not the largest. The documents do not say whether Meta will appeal or how it responded.
Datos clave
- A New Mexico court ordered Meta to pay a civil penalty of $25 billion in a case over systematic deception of users and breach of consumer protection law, according to the court order cited by RIA Novosti. [ 2 ]
- The penalty calculated at $5,000 per violation came to $219,498,600,000, and the judge reduced it to $25 billion. [ 2 ]
- The jury found Meta guilty of almost 43.9 million willful violations of the state's unfair trade practices law between May 2010 and August 2021. [ 2 ]
- Judge Francis Mathew also ordered Meta to pay interest at 15% a year until the debt is fully paid. [ 2 ]
- Kommersant reported that the court found Meta lied or misled users in 26 of the 29 statements examined at trial. [ 4 ]
- The state's prosecutor filed the lawsuit in 2021, and the case is linked to the Cambridge Analytica scandal. [ 3 , 4 ]
Confirmado por varias fuentes
- A New Mexico court ordered Meta to pay $25 billion in a case over misleading users about their data. [ 2 , 3 , 4 ]
- The penalty was reduced from a calculated figure of about $219 billion under state law to $25 billion. [ 2 , 4 ]
- More than 43 million violations were found in the case. [ 2 , 3 , 4 ]
- The case is linked to the Cambridge Analytica data scandal. [ 2 , 3 , 4 ]
Aún sin aclarar
- How Meta responded and whether it will appeal. None of the documents quotes Meta or mentions an appeal.
- Whether the 'record' description is accurate. RIA Novosti's headline calls the fine a record, while Kommersant quotes prosecutor Raul Torres as saying it is one of the largest, if not the largest, single fines against a company in the US.
- Whether the finding of lying came from the court or the jury. RIA Novosti, TASS and vc.ru attribute the finding of guilt to jurors, while Kommersant attributes the finding to the court.