A New Mexico judge ordered Meta to pay $25 billion for misleading Facebook users about how it protected their personal information.
It’s the largest penalty ever imposed on the company and five times the $5 billion fine(nouvelle fenêtre) the US Federal Trade Commission handed Facebook in 2019.
The case dates back to Cambridge Analytica, the political consultancy that harvested data from as many as 87 million Facebook profiles through a personality quiz and used it to target ads in the 2016 US presidential election.
How New Mexico got to the $25 billion Meta penalty
New Mexico sued in 2021, arguing that Facebook told users they were in control of their own information while failing to explain how third parties could access it. In September 2026, a jury found Meta responsible for more than 40 million violations(nouvelle fenêtre) of the state’s Unfair Practices Act.
At up to $5,000 per violation, the maximum was nearly $220 billion. The state asked for up to $40 billion. Meta proposed between $345 million and $3.45 billion. District Judge Francis Mathew set the penalty at $25 billion, plus 15% annual interest until Meta pays. Meta argued the state never showed consumers were harmed and plans to appeal.
New Mexico was the only state to take its Cambridge Analytica claims to trial. In August 2026, 46 other states and two territories settled theirs for about $459 million, as part of a $17 billion settlement with Meta that mostly covered teen safety. New Mexico’s penalty is more than 50 times that amount.
Facebook users won’t see the money because, under New Mexico law, consumer protection penalties fund public education.
The Cambridge Analytica pattern hasn’t gone away
The privacy claims in the New Mexico case centered on the gap between what Meta told users about their data and how it actually handled that data. The state also challenged Meta’s statements about fighting hate speech and misinformation and applying its community standards evenly. That privacy gap is far from an isolated incident, as Meta has faced a long string of controversies over its data practices, privacy protections, and treatment of users:
- A former Meta product manager alleged the company used internal data matching to get around Apple’s tracking rules, which Meta denied.
- Users reported that Meta AI was scanning their camera rolls without explicit consent.
- Internal documents showed Meta’s platforms had become a hotspot for scam ads.
- Meta began using AI chats to personalize ads.
- Instagram dropped end-to-end encryption for direct messages.
- Meta’s Muse AI agent shared a Marketplace seller’s home address with a buyer without asking.
What does Meta’s 25 billion penalty mean for Facebook privacy settings?
The penalty doesn’t change how Facebook handles your data today, and an appeal could take years. Our privacy checklist for Meta apps, including Facebook, Instagram, WhatsApp, and Threads shows how to reduce tracking and limit targeted ads. You can also limit what Meta AI learns about you or delete your Facebook account altogether.
The $25 billion penalty sends a clear warning to Big Tech: Breaking privacy promises can come at a steep cost. But even a ruling this significant won’t change the business model built on collecting and monetizing people’s data.
