Wednesday, October 14Global edition

New Mexico jury finds Facebook liable for Cambridge Analytica data deception, opening door to $200bn penalty

A Santa Fe jury found over 43 million violations of New Mexico's consumer protection law, ruling that Facebook misled users about how it protected their personal data. The judge will set penalties at a hearing on Oct. 1; the state is seeking the maximum $5,000 per violation.
Meta's corporate headquarters campus in Menlo Park, California
Photo by Zetong Li on Pexels
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A New Mexico jury has found Facebook liable for deceiving users about privacy protections on the platform in a case arising from the Cambridge Analytica data scandal. The verdict followed a two-week trial in Santa Fe and found over 43 million violations of the state’s consumer protection law.

The state’s lawsuit, filed in 2021, centred on a third-party personality quiz that harvested data from roughly 87 million Facebook profiles. The data was subsequently sold to Cambridge Analytica, a political consulting firm, which used it to generate targeted advertising during the 2016 U.S. election and the Brexit referendum.

Cambridge Analytica’s clients included Donald Trump’s 2016 campaign. The case concerned Facebook’s statements about how it protected users’ information and its handling of third-party app developers that gathered user data.

Jurors found that Facebook made deceptive statements about safeguarding personal data which affected New Mexico’s entire population of more than two million people. They also found that the company misled the public about its investigations of third-party app developers that harvest user data after the Cambridge Analytica scandal became public.

The verdict establishes liability under New Mexico’s consumer protection law. The remaining question is the appropriate civil penalty. Attorneys representing the state are seeking the maximum penalty of $5,000 for each violation found by the jury.

If the judge imposes the maximum civil penalty for every violation, Meta could owe over $200 billion. Interest would accrue if the company decides to appeal. The judge is due to decide penalties at a hearing on Oct. 1.

The state is also seeking an injunction intended to prevent similar practices in the future. Attorney General Raúl Torrez said any money awarded would be paid into a fund for New Mexico’s education system.

The jury rejected part of the state’s case. Jurors concluded that the state had not proved Facebook made false claims about removing harmful content, including misinformation about the COVID-19 pandemic.

The case adds to New Mexico’s previous enforcement actions involving Meta. In an earlier case, the state secured $942 million over the platform’s policies to protect minors. In August, Meta agreed to pay up to $18 billion to settle a multistate lawsuit involving child safety issues.

The Santa Fe verdict concerns the company’s privacy representations and oversight of outside app developers. The penalty decision will determine whether the jury’s findings lead to the maximum financial exposure sought by the state or to a lower award.

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Gregory VanceLaw & Crime

Gregory Vance covers law and criminal justice with a prosecutor’s eye for how a case is actually built. Precise on procedure, careful with allegations, and clear about what the evidence does and does not show.

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