Facebook was found liable by a jury in New Mexico for violating 43 million state consumer protection laws related to misleading consumers about user safety and privacy. The verdict was announced on Friday. Concurrently, TikTok and its parent company, ByteDance, reached a $100 million settlement with the state of Alabama over allegations of intentionally designing the platform to be addictive and misleading users about its safety. This settlement was made just days before a scheduled trial in Alabama.
The lawsuit against TikTok was initiated by the Alabama attorney general’s office, which claimed that the platform's algorithm promoted increasingly violent content to young users, contributing to a teen mental health crisis. The state also accused TikTok of falsely asserting that it limits access to inappropriate content to ensure the app is rated safe for teens in app stores, as well as misleading the public regarding the Chinese government's access to US users' data.
In the case involving Facebook, the jury found that the company misled users about a data breach that affected approximately 87 million profiles. This data was harvested through a third-party personality quiz and sold to Cambridge Analytica, a firm that assisted in the 2016 presidential campaign of Donald Trump and had plans to work with a pro-Brexit group. The New Mexico jury concluded that Facebook had deceived the public regarding investigations into third parties that harvested user data following the Cambridge Analytica scandal.
The New Mexico Department of Justice stated that the verdict represents a significant victory for consumers in the state. In response, Meta spokesperson Alex Burgos expressed disagreement with the verdict and indicated that the company would continue to defend itself against the claims. This verdict follows a previous settlement in August, where Meta agreed to pay $18 billion related to child safety issues.
Under the terms of the settlement with Alabama, TikTok is required to implement a two-hour daily time limit for users, pause usage after 15 minutes, and enhance age verification processes. The state is set to receive a minimum of $100 million from TikTok within 45 days, with the possibility of receiving up to $300 million if certain conditions are met. At least 27 other states and Washington, DC, have initiated lawsuits against TikTok over similar allegations. TikTok had previously settled with the US Department of Justice for $400 million concerning violations of federal children’s privacy laws.