New Mexico AG Targets AI Regulation After Meta Fine
New Mexico Attorney General Raúl Torrez announces next focus on AI regulation after historic Meta fine.
5 min read
New Mexico Attorney General Raúl Torrez has announced his next focus after successfully securing a historic $25 billion fine against Meta for misleading users about its privacy practices. The ruling, delivered by New Mexico District Court Judge Francis J. Mathew, followed a jury finding that Meta misrepresented its privacy policies to users. Torrez, a Democrat, stated that the case was a significant victory for consumer protection and signaled his intent to expand regulatory efforts to the growing field of artificial intelligence (AI).
Meta Fined $25 Billion for Privacy Misconduct
The $25 billion fine against Meta, a record for a state-level case, was imposed after a jury determined the company misled users about its privacy practices. The lawsuit was initiated following a whistleblower’s revelation that Facebook had collected and shared users’ data with political consulting firm Cambridge Analytica. The case highlighted the misuse of personal information and the failure of Meta to fulfill its promises regarding user privacy.
Attorney General Torrez Shifts Focus to AI Regulation
Torrez emphasized that the victory over Meta was only the beginning of a broader regulatory push against AI developers. He stated, “Anyone in artificial intelligence, people who are building products that they can’t control, people who are making representations in the marketplace about what a product does or doesn’t do, or how it uses or doesn’t use specific types of consumer data, we are going to be watching, and we are prepared to do this again.” He warned that the message to Silicon Valley was clear: this was not the end, but the beginning of increased state-level oversight.
Torrez’s team did not respond to a Daily Caller News Foundation comment request. The ruling has sparked a debate over the balance between consumer protection and free speech, with critics arguing that the case could stifle online expression. However, advocates for stronger regulations argue that the case sets a precedent for holding tech companies accountable for deceptive practices.
Legislative Efforts to Regulate AI
Torrez has already taken steps to regulate AI at the state level. In early October, he and state Democratic Rep. Linda Serrato introduced the Frontier Artificial Intelligence Safety and Accountability Act. This legislation would require the largest AI developers to disclose risks associated with their models and allow New Mexico to sue for damages caused by rogue AI systems. The bill was announced in a press release by the New Mexico Justice Department.
Torrez and 25 other attorneys general also called for federal oversight of AI safety testing and standards, as well as international cooperation to pace AI development. These efforts reflect a growing concern among state officials about the potential risks of unregulated AI technology.
Support for Consumer Protection Laws
Nidhi Hegde, executive director of the American Economics Liberties Project, praised the state’s approach, stating that New Mexico did not sue over content or speech, where tech companies have built legal shields. Instead, the state focused on deception, noting that Meta promised users one thing about its privacy practices and did another. Hegde explained, “Meta got dinged for what we would generally call poor business, like deceiving their consumers.”
Kathleen Farley, vice president of litigation for the Chamber of Progress, echoed this sentiment, calling the case a result of Meta’s deceptive practices. She added, “This is not about things that other people were saying on the platform. This is statements that [Meta CEO] Mark Zuckerberg made. These are statements that Sheryl Sandberg made. These are statements that Meta made on their web pages, explaining how your data was used.”
Opposition and Free Speech Concerns
Opponents of the court’s ruling argue that it poses a threat to free speech, particularly regarding hate speech and disinformation. Casey Mattox, a constitutional attorney and vice president of legal strategy for Stand Together, stated that the decision would allow a few lawyers in a few states to regulate speech online in violation of federal law and the First Amendment. He urged Meta to appeal the ruling to protect both its rights and those of the public.
Meta’s Chief Legal Officer, C.J. Mahoney, echoed these concerns, stating, “This ruling, and the Attorney General’s approach to enforcement, makes it all but impossible to do business in the state of New Mexico. At its core, this lawsuit seeks to impose a tax on speech to enforce new rules for what people can say online.”
Legal Findings and Implications
The court’s findings concluded that Meta made repeated false statements about its ability to identify and remove hate speech and misinformation. The jury found that Facebook’s public assurances regarding the platform’s handling of misinformation and hate speech were deceptive. The court’s findings of law stated that Meta’s promises were false and that the company knowingly misrepresented its practices to users.
Context and Broader Implications
Most states have their own consumer protection laws, and New Mexico’s victory may serve as a model for other states seeking to regulate similar conduct. The case highlights the increasing role of state attorneys general in holding tech companies accountable for misleading practices, particularly in the realm of data privacy and AI development.
“This is a historic day for New Mexico and for consumers across the country,” said Attorney General Raúl Torrez. “For too long, powerful technology companies have operated as though their size and influence put them beyond the reach of the law… We took on one of the largest companies in the world because New Mexicans deserve honesty, accountability, and the protection of their personal information. Today’s result makes clear that no corporation is too powerful to be held accountable.” Official release linked in comments. #NMpol #NMLegislature #NewMexico
Conclusion and Future Outlook
As New Mexico’s attorney general moves to regulate AI, the case against Meta sets a precedent for state-level oversight of tech companies. The ruling underscores the growing tension between consumer protection and free speech, with significant implications for the future of online regulation. With the state’s focus shifting to AI, the legal and ethical challenges of AI development will likely become a central issue in the coming years.
Source: Daily Caller
