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U.S. Virgin islands sues Meta over alleged scam profits and child safety failures
Lawsuit claims Facebook and Instagram owner knowingly exposes users to fraud while misleading the public on platform safety
The Attorney General of the U.S. Virgin Islands has filed a lawsuit against Meta Platforms, the parent company of Facebook and Instagram, alleging that the social media giant deliberately profits from advertisements promoting scams and fails to protect children on its platforms.
Filed in the Superior Court of the Virgin Islands on St. Croix, the lawsuit accuses Meta of prioritizing revenue over user safety. “Meta knowingly and intentionally exposes its users to fraud and harm. It does so to maximize user engagement and, in turn, its revenue,” the filing states.
The legal action cites a recent Reuters report revealing that internal Meta projections anticipated nearly 10% of the company’s 2024 revenue, approximately $16 billion, would stem from ads for scams, illegal gambling, and banned products. According to the report, Meta only blocks advertisers suspected of fraud if its algorithms are at least 95% certain of wrongdoing.
The lawsuit also claims Meta misleads the public about its safety measures, particularly regarding children and teens. “Meta consistently, and intentionally, fails to implement the policies it writes,” it states, highlighting discrepancies between the company’s public assurances and internal practices.
Meta, through spokesperson Andy Stone, denied the allegations, calling them “baseless.” Stone emphasized that reports of scams on the company’s platforms have decreased by half over the past 18 months and reaffirmed Meta’s commitment to protecting young users.
The case follows a string of scrutiny over Meta’s internal policies. In August, Reuters reported that Meta’s AI chatbot guidelines once allowed “romantic or sensual” conversations with minors, a policy that the company later removed.
Attorney General Gordon C. Rhea described the lawsuit as the first effort by a U.S. attorney general to hold Meta accountable for widespread fraud and unsafe practices. The Virgin Islands is seeking penalties under its consumer protection laws, potentially setting a precedent for future regulatory actions.
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