US Court Orders Meta To Fund Child Mental Health Programs, Imposes $567 Million Fine
New Delhi, 7th August 2026: A court in the US state of New Mexico has ordered Meta, the parent company of Facebook and Instagram, to pay $567 million (approximately ₹5,390 crore) after finding that the social media giant contributed to harming children’s mental health and failed to adequately protect young users on its platforms.
The latest penalty comes months after a jury had already imposed a $375 million civil penalty on Meta, taking the company’s total financial liability in the case to $942 million. The lawsuit, brought by New Mexico Attorney General Raúl Torrez, accused Meta of knowingly exposing children to harmful content, online predators and addictive platform features while prioritising user engagement over safety.
As part of the ruling, the court directed that $420 million of the newly imposed amount be allocated towards treatment services for children and teenagers affected by social media-related mental health issues. The remaining funds will support awareness campaigns, prevention programmes and mental health screenings over the next five years.
The court also ordered Meta to implement several child safety reforms across Facebook and Instagram. These include strengthening age-verification systems using artificial intelligence, deleting data collected from users under the age of 13, creating a reporting portal for schools to flag underage accounts, and regularly submitting compliance reports to the court.
Judge Bryan Biedscheid ruled that Meta’s platform design created a public nuisance by encouraging excessive use among minors while failing to sufficiently protect them from exploitation and harmful online interactions. However, the court stopped short of directing changes to the company’s recommendation algorithms, citing legal and constitutional concerns.
Meta has announced that it will appeal the decision, arguing that the ruling does not accurately reflect the company’s ongoing investments in online safety. The company maintains that it has introduced several parental controls, teen safety features and AI-powered tools to improve protections for younger users.
The judgment is being viewed as one of the most significant legal actions against a social media company over children’s online safety and mental health. Legal experts believe the ruling could influence similar lawsuits currently pending across the United States, where regulators and parents are increasingly scrutinising the impact of social media platforms on young users.
