Meta Faces New Mexico Trial That Could Force Changes to Facebook, Other Platforms

The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. (Reuters)
The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. (Reuters)
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Meta Faces New Mexico Trial That Could Force Changes to Facebook, Other Platforms

The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. (Reuters)
The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. (Reuters)

A trial beginning in New Mexico on Monday could prompt a judge to order sweeping changes to how Facebook, Instagram and WhatsApp operate - a move Meta Platforms has warned could force it to withdraw from the state.

The case, which will be tried before a judge in Santa Fe, stems from a lawsuit filed by New Mexico Attorney General Raúl Torrez, a Democrat, accusing the social media giant of designing its products to addict young users and failing to protect children from sexual exploitation on its platforms.

At the heart of the trial is whether Meta’s platforms have created a "public nuisance" under New Mexico law. That finding would allow the judge to order wide-ranging remedies aimed at curbing alleged harms to young users. The case is being closely watched as states, municipalities and school districts across the country pursue similar claims seeking to force changes at the industry level.

Monday's trial marks the second phase of New Mexico's lawsuit. A jury in March found Meta violated the state’s consumer protection law by misrepresenting the safety of Facebook and Instagram for young users. ‌It ordered the ‌company to pay $375 million in damages.

Criticism of children's safety on social media has been mounting for years. ‌On ⁠Wednesday, Meta warned ⁠investors that legal and regulatory blowback in the European Union and the US "could significantly impact our business and financial results."

SWEEPING REMEDIES AT STAKE

Torrez’s office is expected to seek both billions of dollars more in damages and an order requiring Meta to make substantial changes to its platforms for New Mexico users, according to court filings.

Meta has said it has already addressed many of the state's concerns and taken extensive measures to ensure its young users are safe. The company said in court filings last week that many of the changes Torrez’s office is seeking are impossible for it to comply with and may force it to withdraw from the state entirely.

"The New Mexico Attorney General’s focus on a single platform is a misguided strategy ⁠that ignores the hundreds of other apps teens use daily," a Meta spokesperson said in a statement ahead ‌of the trial. "Rather than providing comprehensive protections, the state's proposed mandates infringe on parental rights ‌and stifle free expression for all New Mexicans."

A ‘PUBLIC NUISANCE’

The trial before Judge Bryan Biedscheid will examine whether Meta's conduct meets the standard for a public nuisance ‌under New Mexico law, which would allow the court to impose remedies aimed at abating the alleged harm.

A public nuisance claim targets ‌activities that unreasonably interfere with the health and safety of a community. Classic examples include blocking a public road, polluting a waterway or emitting noxious fumes.

State governments have invoked public nuisance law in recent decades to pursue a broader range of industries, including litigation tied to tobacco, opioids, climate change, and vaping, said Adam Zimmerman, a professor at USC’s Gould School of Law.

New Mexico's case is among a growing number of lawsuits accusing Meta and other social media companies ‌of intentionally designing products to be addictive to young people.

While many cases have been filed by families over specific injuries to individuals, more than 40 other states and over 1,300 school districts have ⁠filed lawsuits seeking court-ordered changes ⁠and damages under public nuisance law.

New Mexico said it plans to ask the judge to order Meta to make changes including verifying users' ages; redesigning its algorithm to promote quality content for minors; and ending autoplay and infinite scrolling for minors.

"It will be an opportunity for us to explore more deeply the size and scale and effectively the monetary value of the public nuisance harm that was a product of this business's behavior for the last, you know, 10 or 15 years," Torrez told reporters at a press conference on Thursday ahead of the trial.

The company has said in court filings that it cannot have created a public nuisance because it has not interfered with a public right. It also said there is no scientific evidence to support the idea that social media has caused mental health problems, and that many of the state’s requests are "technologically impractical or completely impossible."

In a public nuisance case, the state can also seek money damages to abate the harm. That sum could be substantial when the impact is said to have affected large segments of the population. Torrez’s office has not detailed the amount it will seek.

Meta said in court filings New Mexico plans to ask for $3.7 billion in damages to fund a 15-year mental health plan including new healthcare facilities and hiring providers, a request it said would require it pay for mental health care for all teens in the state regardless of the cause of their needs.



Hotels Strive to Be Found as AI Models Conduct Travel Search

The rise of AI to plan and book travel will force hotels to make themselves visible when people describe what type of room they would like. JOEL SAGET / AFP/File
The rise of AI to plan and book travel will force hotels to make themselves visible when people describe what type of room they would like. JOEL SAGET / AFP/File
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Hotels Strive to Be Found as AI Models Conduct Travel Search

The rise of AI to plan and book travel will force hotels to make themselves visible when people describe what type of room they would like. JOEL SAGET / AFP/File
The rise of AI to plan and book travel will force hotels to make themselves visible when people describe what type of room they would like. JOEL SAGET / AFP/File

With people increasingly adopting AI to help plan their vacations, hotels are working to make sure that you check them out -- and check in.

Whether using ChatGPT or AI-enabled travel sites like Layla.ai, it is already possible to pose search questions like: "Calm hotel with west-facing balcony" or "Charming hotel with spa that accepts dogs".

This simple switch to plain speech searches belies major technical changes that mean hotels have to learn to become visible to AI models, AFP said.

"We're in complete upheaval: last year 35 percent of French people used artificial intelligence to find a hotel, a cafe or a restaurant," said Nicolas Marette, founder of Cust place, a French company that helps firms optimize their digital presence.

According to a recent study by the Boston Consulting Group (BCG), around 37 percent of travelers are already using AI-enabled online travel sites to plan and book trips.

Hospitality industry players have taken notice.

A quarter of hospitality firms "have an AI strategy that is starting to produce real returns across multiple organizational activities", according to the BCG report.

"What a hotel needs to do to get well referenced by search engines is not the same thing that they need to do to get referenced by artificial intelligence," said Johanna Benesty at BCG.

Moreover, not all AI models "work in the same way," she added.

- Plain speech, elaborate task -

At French hospitality group Accor, which owns dozens of chains including Pullman, Sofitel, Mercure and Ibis, "we've been trying for a year already to understand how to make ourselves more relevant... and be more visible," the group's AI and data science chief Nicolas Maynard told a recent industry conference.

But that can be a challenge as AI users see fewer options, meaning securing a top ranking becomes even more critical.

"It's a big change: with Google a search gives you 50 results... while if you ask ChatGPT it will give you five" and that is it, Maynard added.

The switch to plain speech means big changes for hotels.

"The biggest challenge is to understand vague requests like 'I want a romantic hotel in the south'," Maynard said.

Because Accor's systems do not currently classify properties by such attributes, the group has its work cut out.

"We need to adapt our systems to take semantics into account," Maynard said.

- Hyper detailed -

But beyond semantics, AI will allow hotels to provide customers with a wealth of information.

Best Western France's director Olivier Cohn said he believed "what will make the difference is our ability to answer client questions more thoroughly".

Hotels could respond to even the most detailed client questions such as "knowing if there is a power socket on the left side of the bed because they are used to sleeping on that side of the bed and charging their devices", he said.

While such questions are simple in and of themselves, current systems and staff can struggle to answer in such detail, said Cohn, whose chain counts more than 4,000 hotels throughout the world.

Some hotels are already deploying AI chatbots to help answer simple guest questions, allowing staff to provide higher-value services.

But winning the referencing game isn't only up to the hotels themselves.

BCG notes that "algorithms elevate properties with comprehensive, high-trust, multisource information over those with sparse or inconsistent digital footprints", meaning that client descriptions and reviews will also be important.

But just like online travel agencies (OTA) charge commissions and offer premium service for a price, AI models are already beginning to do the same.

"The familiar OTA commission model will evolve into AI-era distribution fees, charged for prominence and relevance in algorithmic recommendations," the BCG report said.


Google, Meta, TikTok Hit by EU Consumer Complaints about Handling of Financial Scams

FILE PHOTO: The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. REUTERS/Benoit Tessier/File Photo
FILE PHOTO: The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. REUTERS/Benoit Tessier/File Photo
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Google, Meta, TikTok Hit by EU Consumer Complaints about Handling of Financial Scams

FILE PHOTO: The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. REUTERS/Benoit Tessier/File Photo
FILE PHOTO: The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. REUTERS/Benoit Tessier/File Photo

Alphabet's Google, Meta Platforms and TikTok were hit with complaints from European Union consumer groups on Thursday for allegedly failing to protect users from financial scams on their platforms, putting them at risk of regulatory fines.

The move highlights growing pressure worldwide on Big Tech to do more to address the negative impacts of social media, particularly for children and vulnerable users.

The complaints, filed by the European Consumer Organisation (BEUC) and 29 of its members in 27 European countries, were submitted to the European Commission and national regulators under the Digital Services Act, which requires large online platforms to do more to tackle illegal and harmful content, Reuters reported.

"Meta, TikTok and Google not only fail to proactively remove fraudulent ads but also do little when being notified about such scams," BEUC Director General Agustin Reyna said in a statement.

"If they fail to address the financial scams circulating on their platforms, fraudsters will continue to reach millions of European consumers daily, leaving people at risk of losing hundreds to thousands of euros to fraud," he said. Google and Meta rejected the complaints and said they work proactively to protect their users.

A Google spokesperson said: "We strictly enforce our ad policies, blocking over 99% of violating ads before they ever run. Our teams constantly update these defences to stay ahead of scammers and protect people."

Meta said it found and removed over 159 million scam ads last year, 92% before anyone reported them. "We invest in advanced AI, tools, and partnerships to stop them," a spokesperson said.

TikTok said it takes action against violations, adding that scams are an industry-wide challenge while bad actors constantly adapt their tactics.

The consumer groups, meanwhile, said they reported nearly 900 ads suspected of breaching EU laws between December last year and March this year but the platforms only took down 27% of the ads and 52% of the reports were rejected or ignored.

The groups urged regulators to investigate whether the companies were complying with the rules and to impose fines for breaches.

DSA fines can reach as much as 6% of a company's global annual turnover.


SDAIA Outlines Comprehensive Data Quality Journey to Support National AI Initiatives

The Saudi Authority for Data and Artificial Intelligence (SDAIA)
The Saudi Authority for Data and Artificial Intelligence (SDAIA)
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SDAIA Outlines Comprehensive Data Quality Journey to Support National AI Initiatives

The Saudi Authority for Data and Artificial Intelligence (SDAIA)
The Saudi Authority for Data and Artificial Intelligence (SDAIA)

The Saudi Data and Artificial Intelligence Authority (SDAIA) highlighted data quality as a critical foundation for enhancing information reliability, boosting performance, and enabling accurate business decisions, as part of its efforts during the Year of Artificial Intelligence 2026 to raise awareness about data importance.

The authority noted that high data quality serves as the cornerstone for sustainable national trust, integrated digital services, operational savings, entrepreneurship, and readiness for artificial intelligence applications, SPA reported.

SDAIA stated that the data quality journey spans five phases, beginning with a creation phase, where data is entered according to standardized criteria.

This is followed by a storage and organization phase to structure data and eliminate duplication, and an integration and sharing phase, which assesses quality before data is reused.

The journey continues through an analysis and use phase, where report accuracy is tied directly to source quality, and culminates in a continuous improvement phase, which utilizes analysis and user feedback to constantly refine data sets.

SDAIA called on organizations to adopt comprehensive data quality practices and strictly adhere to national regulations and standards. This includes integrated data quality planning, prioritizing initial assessments, developing data rules, and establishing clear performance indicators to measure improvement.

The authority also emphasized the importance of conducting periodic reviews and enabling users to report quality problems, which will ultimately maximize the efficiency of digital services and AI applications across the Kingdom.