Meta Faces Lawsuit Over Failure To Protect Users And Children From Scams Advertisements

Meta: The attorney general of the US Virgin Islands has filed a lawsuit against Meta Platforms Inc., accusing the Facebook and Instagram parent of knowingly profiting from scam advertisements and failing to adequately protect users, especially children, on its social media platforms.

Filed in the Superior Court of the Virgin Islands on St. Croix, the lawsuit alleges that Meta prioritized engagement and revenue over user safety.

‘Knowingly Exposed Users To Harm’: Lawsuit

“Meta knowingly and intentionally exposes its users to fraud and harm,” the lawsuit states, alleging the company allowed scams to flourish in order to maximise profits. The legal action seeks penalties under the territory’s consumer protection laws.

Attorney General Gordon C. Rhea said the case marks the first time an attorney general has moved legally to address reports of widespread fraud on Meta’s platforms.

Reuters Report Central To Legal Action

The lawsuit repeatedly references a recent Reuters investigation that revealed Meta internally projected that around 10% of its 2024 revenue roughly $16 billion would come from ads linked to scams, illegal gambling and banned products.

The report, based on internal company documents, also found that Meta often does not block advertisers suspected of fraud unless its systems are at least 95% certain of wrongdoing. Following the report, two US senators urged the Securities and Exchange Commission and the Federal Trade Commission to investigate the matter.

Allegations Of Misleading Safety Claims

The Virgin Islands attorney general has also accused Meta of misleading the public about the safety of Facebook and Instagram, particularly for children. “Meta repeatedly touts the ‘safety’ of its platforms to users, parents, regulators and Congress, while consistently failing to implement the very policies it claims to enforce,” the lawsuit states.

Meta Rejects Allegations

Responding to the lawsuit, Meta spokesperson Andy Stone said the claims were unfounded. “We aggressively fight fraud and scams because users, advertisers and Meta itself do not want this content,” he said, adding that scam reports on Meta’s platforms have fallen by half over the past 18 months.

Stone also dismissed allegations related to child safety, saying Meta has a “longstanding commitment to supporting young people” and is confident the evidence will support its position.

Earlier Scrutiny Over AI Guidelines

The lawsuit comes amid broader scrutiny of Meta’s safety practices. In August, sources revealed that internal guidelines had allowed Meta’s AI chatbots to engage minors in romantic or sensual conversations. Meta later said it removed those provisions and tightened its safeguards.

(Via Agency Inputs)

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