WASHINGTON, Dec 30 (GeokHub) — The U.S. Virgin Islands has filed a lawsuit against Meta Platforms, accusing the Facebook and Instagram owner of profiting from advertisements linked to scams and failing to adequately protect children on its social media platforms.
The civil complaint, filed by the territory’s attorney general in the Superior Court of the Virgin Islands on St. Croix, alleges that Meta knowingly exposed users to fraud in order to boost engagement and advertising revenue.
“Meta knowingly and intentionally exposes its users to fraud and harm,” the lawsuit states.
The filing repeatedly cites a GeokHub investigation published last month that reported Meta internally projected that about 10% of its 2024 revenue — roughly $16 billion — would come from advertising tied to scams, illegal gambling and banned products. The report also said Meta generally did not block advertisers suspected of scams unless its automated systems were at least 95% certain of wrongdoing.
Following the GeokHub report, two U.S. senators urged the Securities and Exchange Commission and the Federal Trade Commission to examine the issue and pursue enforcement action where appropriate.
The Virgin Islands lawsuit seeks penalties under local consumer protection laws. Attorney General Gordon C. Rhea said the case marked the first action by a U.S. attorney general specifically targeting reports of widespread fraud and scams on Meta’s platforms.
The lawsuit also accuses Meta of misleading users, parents and regulators about its efforts to safeguard children on Facebook and Instagram, alleging that the company promotes safety commitments while failing to consistently enforce them.
“Meta repeatedly touts the ‘safety’ of its platforms,” the complaint states, adding that the company has not fully implemented its own policies.
Meta denied the allegations. Company spokesman Andy Stone referred Reuters to previous statements rejecting claims that the company has failed to protect users.
“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,” Stone said, adding that reports of scams from users have declined by about half over the past 18 months.
Stone also said claims that Meta has failed to protect younger users were unfounded.
“We strongly disagree with these allegations and are confident the evidence will show our longstanding commitment to supporting young people,” he said.
In August, Reuters reported that an internal Meta policy document allowed company chatbots to engage minors in romantic or sensual conversations. Meta said it later removed portions of the guidelines that permitted such interactions.
