At least the penalties are consistent. Everything else about their teen protections? Not so much.
A New Mexico court just ordered Meta to pay $567 million into a fund for child safety initiatives. Add that to the $375 million civil penalty from March, and we're looking at $942 million total. Which is a lot of money, until you remember that Meta's quarterly revenue hovers around $40 billion. At this rate, they're not being punished so much as they're paying a subscription fee for the privilege of running unregulated experiments on children's brains.
Judge Bryan Biedscheid of the First Judicial District Court in Santa Fe ruled that Facebook and Instagram created a public nuisance and significantly contributed to New Mexico's youth mental health crisis. The jury had already concluded in March that Meta breached the state's consumer protection laws by misrepresenting how safe these platforms actually are for kids. Translation: they knew, and they did it anyway.
The $567 million will mostly go toward treatment services—about $420 million over five years—with the rest supporting prevention and awareness programs. The ruling also mandates actual operational changes for New Mexico users under 18: a combined 90-hour monthly limit across both platforms, disabled notifications during school and overnight hours, hidden Like counts by default, and private Instagram accounts as the default setting. These are the things that should have existed from day one, which is the real problem with this entire arrangement.
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Meta says it has invested heavily in teen safety. The company is appealing. New Mexico Attorney General Raúl Torrez called it a victory for parents and children. Everyone's performing their role perfectly. Meta gets to say they care while fighting the ruling. Torrez gets a headline. Parents get the satisfaction of a nine-figure judgment that won't meaningfully change the business model.
What we don't get is clarity on whether any of this actually works. Does $942 million in penalties change how Meta designs products? Does it make them less profitable to exploit engagement metrics from teenagers? Does it make them stop? Not yet. The company will appeal. Other states are watching. More lawsuits are coming. Sometime next year there will be another settlement with another number that sounds huge until you divide it by Meta's quarterly earnings.
At this point, the only honest question is whether these penalties ever actually change anything, or if they're just the cost of doing business with a different zip code.
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Danny Fisk
Staff writer covering financial markets and corporate strategy. Has strong opinions about spreadsheets.
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