Meta description: A New Mexico jury found Facebook liable for 43 million privacy violations as TikTok agreed to a $100M Alabama settlement. Here's what it means for users.
Social media platforms face mounting legal pressure over privacy and child safety. (Photo: Unsplash)
Friday, September 25, 2026, may go down as one of the worst days in court for Big Tech this year. Within hours of each other, a New Mexico jury found Facebook liable for deceiving users about privacy, and TikTok agreed to a settlement of at least $100 million with the state of Alabama over claims its app harms young people.
The two cases are separate, but together they send a clear signal: states are no longer waiting for Congress to regulate social media. They are taking platforms to court — and winning.
Facebook Liable: The New Mexico Verdict Explained
After a two-week trial in Santa Fe, jurors concluded that Facebook, owned by Meta, violated New Mexico's consumer protection law more than 43 million times. The case reached back to one of the defining tech scandals of the last decade: Cambridge Analytica.
Back to Cambridge Analytica
The state argued that Facebook misled the public about a data breach in which a third-party personality quiz harvested information from roughly 87 million profiles. That data ended up with Cambridge Analytica, a now-defunct political consulting firm that used it for targeted political advertising, including work for Donald Trump's 2016 presidential campaign.
Jurors found that Facebook deceived the public about its investigations into third parties that harvest user data after the scandal. They also found the company made deceptive statements about protecting the data of New Mexico's entire population of more than two million people.
How Much Could Meta Pay?
The jury decided liability, not the penalty. That now falls to the judge. State attorneys are asking for the maximum civil penalty of $5,000 per violation. Multiplied across 43 million violations, the theoretical ceiling tops $200 billion — a figure that would dwarf any privacy penalty in history.
Few observers expect the final number to reach that level, and an appeal is likely. Meta spokesperson Alex Burgos said the company disagrees with the verdict and will keep defending itself against what it called efforts to distort its record. The New Mexico Department of Justice, meanwhile, called the outcome a significant victory for the state's consumers.
Why New Mexico Stood Alone
New Mexico is the only state to pursue a case over the Cambridge Analytica breach. In August, Meta agreed to an $18 billion settlement in a separate child-safety lawsuit, and a provision in that 130-page agreement released the company from future liability tied to the scandal. New Mexico's case moved forward regardless.
State courts are becoming the main battleground for tech accountability. (Photo: Unsplash)
TikTok Settlement: $100 Million and New Limits for Teens
On the same day, Alabama Attorney General Steve Marshall announced that TikTok and its Chinese parent company, ByteDance, had agreed to settle — just days before the case was set to go to trial. It is TikTok's first-ever settlement with a U.S. state.
What Alabama Alleged
Alabama's lawsuit, filed last year, accused TikTok of intentionally designing its app to be addictive. The state claimed the algorithm pushed increasingly violent content to young users, contributing to a teen mental health crisis and a surge in related emergency room visits.
The state also alleged TikTok falsely claimed it limited access to inappropriate content in order to secure a teen-safe rating in app stores, and misled the public about the Chinese government's potential access to U.S. user data.
Key Terms of the TikTok Deal
- Money: A minimum of $100 million due within 45 days, potentially rising to $300 million if certain conditions are met.
- Daily time limit: A two-hour daily cap for young users.
- Break prompts: A pause after 15 minutes of use.
- Nighttime curfew: Restricted access for children between midnight and 6 a.m.
- Stronger age checks and more user-friendly parental controls.
- No cosmetic filters for teen users, plus stronger content moderation.
The deal doesn't end TikTok's legal exposure. At least 27 other states and Washington, D.C., have filed similar lawsuits. TikTok also previously agreed to a $400 million settlement with the U.S. Department of Justice over alleged violations of federal children's privacy law.
TikTok will add time limits and nighttime restrictions for young users under the Alabama deal. (Photo: Unsplash)
Why These Cases Matter for Social Media Privacy
On their own, each case would be notable. Together, they point to a broader shift in how tech companies are being held accountable in the United States.
States Are Leading the Charge
With comprehensive federal privacy legislation still stalled, state attorneys general have become the most aggressive regulators of Big Tech. Consumer protection laws — originally written for false advertising and shady sales tactics — are proving to be powerful tools against platforms accused of misleading users.
Design Changes, Not Just Fines
The TikTok settlement goes further than a payment. Time limits, curfews and filter bans are changes to how the product actually works. That mirrors Meta's August settlement, which also required platform changes for young users. Regulators increasingly want to reshape the product, not just collect a check.
Old Scandals Still Carry Risk
The Facebook verdict shows that a privacy lapse from 2018 can still produce enormous liability in 2026. For tech companies, the lesson is that public statements about data protection are legally binding promises — and juries are willing to count every violation.
What It Means for Everyday Users
If you or your kids use these apps, a few practical takeaways stand out:
- Expect more built-in limits for teen accounts, including time caps and overnight lockouts.
- Review third-party app permissions connected to your social accounts — quizzes and games are a common data leak point.
- Use parental controls, which platforms are now under pressure to make easier to find and use.
- Watch for more state lawsuits — the outcomes in dozens of pending cases could reshape your apps further.
What Happens Next
In New Mexico, the judge will decide Meta's penalty, and an appeal appears likely given the company's response. In Alabama, TikTok must begin rolling out its promised safety features while it continues to fight similar claims across the country.
One thing is certain: the era of self-regulation for social media is fading fast. Courtrooms, not boardrooms, are increasingly setting the rules for how platforms treat user data and young people.
What do you think? Should social media companies face billion-dollar penalties for past privacy failures, or do design changes like TikTok's time limits matter more? Share your view in the comments below, and subscribe to get the day's biggest tech and news stories delivered to your inbox.
Sources: Al Jazeera, Associated Press, Reuters, PBS News, CBS News, New Mexico Department of Justice, Alabama Attorney General's Office.
Labels: Social Media, Tech News, Privacy, Meta, TikTok
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