The U.S. Virgin Islands Attorney General has sued Meta Platforms, the parent company of Facebook and Instagram, alleging that the social media giant consciously makes a profit on ads promoting scams and fails to safeguard children on its platforms.
The lawsuit was filed in the Superior Court of the Virgin Islands on St. Croix, alleging that Meta had prioritized revenue over user safety.
The filing reports, “Meta knowingly and intentionally exposes its users to fraud and harm. It does so to maximize user engagement and, in turn, its revenue.”
The lawsuit refers to a recent report by Reuters that showed that, according to an internal projection made by Meta, at least 10 percent of the company’s 2024 income, estimated at $16 billion, would come from advertisements of scams, illicit gambling, and prohibited items.
However, the report revealed that Meta will only block advertisers who are suspected of committing fraud, as long as its algorithms are at least 95 percent certain.
The lawsuit further states that Meta deceives the masses into believing that it has taken appropriate steps towards its safety practices, especially for children and teens.
It added that the “Meta consistently, and intentionally, fails to implement the policies it writes,” portraying the discrepancies between the company’s public assurances and internal practices.
Spokesperson Andy Stone denied the accusations made by Meta, which he referred to as “baseless.” Stone highlighted that instances of fraud on the platforms of the company had reduced by half in the last 18 months and reiterated the interest of Meta in safeguarding young users.
Meanwhile, the case is preceded by an investigation of the internal policies of Meta. Reuters reported in August that Meta’s AI chatbot guidelines once allowed “romantic or sensual” conversations with minors, a policy that the company later removed.
According to Attorney General Gordon C. Rhea, the suit was the first attempt by an attorney general of the United States to hold Meta responsible so far as massive fraud and unsafe procedures are concerned.
The Virgin Islands is pursuing penalty proceedings in its consumer protection statutes, which may create precedent in future regulatory measures.
