The attorney general of the US Virgin Islands sued Meta Platforms, accusing the company that owns Facebook and Instagram of deliberately profiting from scam ads and failing to keep its social platforms safe for children.
“Meta knowingly and intentionally exposes its users to fraud and harm. It does so to maximize user engagement and, in turn, its revenue,” states the lawsuit, which was filed in the Superior Court of the Virgin Islands in St. Croix.
The lawsuit repeatedly cites a Reuters article published last month, which revealed how Meta internally projected that 10% of its revenue in 2024, about $16 billion, would come from ads for scams, illegal gambling and banned products. Based on a series of internal company documents, the article also reported that Meta does not block advertisers suspected of scams unless its algorithms are 95% sure that the advertiser is engaged in inappropriate behavior.
Following the publication of the story, two US senators asked the Securities and Exchange Commission (SEC) and the Federal Trade Commission (FTC) to investigate the matter and “take vigorous enforcement actions where appropriate.”
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The Virgin Islands’ lawsuit seeks to impose penalties for violating its consumer protection laws. In a statement, Attorney General Gordon C. Rhea said this action “marks the first effort by an attorney general to address reports of rampant fraud and scams on Meta platforms.”
The lawsuit also accuses Meta of misleading the public about its efforts to protect children and adults on its platforms, including Facebook and Instagram.
“Meta repeatedly touts the ‘safety’ of its platforms to its users, parents, regulators, and Congress,” the Virgin Islands lawsuit states. “It consistently and intentionally fails to implement the policies it writes.”
In response to the lawsuit, Meta spokesman Andy Stone referred Reuters to previous statements by the company calling allegations that it has failed to protect consumers unfounded.
“We aggressively fight fraud and scams because people on our platforms don’t want this content, legitimate advertisers don’t want it, and we don’t want it either,” he said, adding that reports of scams from users of Meta’s platforms have decreased by half in the last 18 months.
Stone said claims about Meta’s failure to make the platform safe for young users were also unfounded.
“We strongly disagree with these allegations and are confident that the evidence will show our long-standing commitment to supporting young people,” he said.
In August, Reuters reported that an internal Meta document outlining its policies on chatbot behavior allowed the company’s artificial intelligence creations to “engage a child in romantic or sensual conversations.”
Meta responded to that report by saying it had removed parts of the guidelines that allowed chatbots to flirt and engage in romantic role-playing games with minors.
With information from Reuters
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