Key facts
- Meta was ordered to pay New Mexico $25 billion for misleading users on privacy.
- New Mexico Attorney General Raúl Torrez warned the AI industry could be next.
- The lawsuit against Meta was based on consumer protection laws regarding privacy controls.
New Mexico Attorney General Raúl Torrez has warned the artificial intelligence industry that it could be the next target for legal action, following a record $25 billion judgment against Meta Platforms for misleading users about its privacy protections. Torrez secured the substantial ruling after opting out of a larger multistate settlement with Meta. The case, which relied on consumer protection laws, found Meta deceived users regarding its privacy controls. Torrez stated that companies building AI products they cannot control or making misrepresentations about their capabilities will be closely watched and are prepared for further enforcement actions. The ruling is seen as a significant warning to Silicon Valley and the burgeoning AI sector.