00:00A jury just ordered Meta to pay $375 million for putting kids at risk on its platforms.
00:06Now, Meta is threatening to pull Facebook and Instagram from an entire state.
00:11Here's what's happening.
00:12In 2023, New Mexico's Attorney General sued Meta after investigators created a fake profile of a 13-year-old girl
00:19that was almost immediately flooded with inappropriate messages from adults.
00:23That case went to trial this spring, and the jury returned with a maximum penalty of $5,000 per violation,
00:31totaling $375 million.
00:33New Mexico then became the first state ever to beat a major tech company in court over child safety.
00:40But the trial isn't over just yet.
00:42Phase 2 started this week with no jury, just a judge to decide whether Meta's platforms qualify as a public
00:48nuisance,
00:49a label previously used against opioid companies.
00:52More than 40 states have filed similar lawsuits, and they're all watching to see what happens here.
00:57New Mexico wants Meta to pay an additional $3.7 billion, redesign its recommendation algorithms,
01:03ban push notifications during school hours, and verify with 99% accuracy that anyone claiming to be 13 actually is.
01:10Meta says that the 99% threshold is impossible.
01:14In a court filing, the company warned that meeting New Mexico's demands would force it to remove the apps from
01:18the state entirely.
01:19New Mexico's AG fired back, saying that Meta redesigned its products before when it wanted to,
01:25and that this is about priorities, not capability.
01:27So the big question here, should a court be able to force a tech company to redesign its products?
01:32Drop your take in the comments and follow us here for more.
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