U.S. Virgin Islands Sues Meta, Accuses Company of Profiting From Scam Ads and Failing Child Safety

The attorney general of the U.S. Virgin Islands has filed a lawsuit against Meta Platforms, alleging that the company knowingly profited from advertisements linked to scams while failing to protect users — including children — on Facebook and Instagram. The suit, filed in the Superior Court of the Virgin Islands on St. Croix, claims Meta “intentionally exposes its users to fraud and harm” in order to maximize engagement and revenue. It cites a recent Reuters investigation that reported Meta internally projected that about 10% of its 2024 revenue — roughly $16 billion — would come from ads involving scams, illegal gambling and banned products, and that advertisers are rarely blocked unless algorithms are nearly certain of misconduct.

The lawsuit argues that Meta misled the public about safety measures on its platforms and failed to enforce its own policies, despite repeatedly promoting Facebook and Instagram as safe environments for users. Virgin Islands Attorney General Gordon C. Rhea said the case represents the first attorney general action aimed at addressing widespread scam and fraud concerns linked to Meta’s platforms. The complaint also highlights concerns about youth safety online, pointing to claims that the company overstates its protections for children and adults.

Meta has rejected the allegations, with spokesperson Andy Stone pointing to previous company statements asserting that user safety is a priority and that reports of scams on its platforms have dropped by half in the past 18 months. He said Meta “aggressively fights fraud and scams” and disputed claims that the company fails to safeguard young users, maintaining that the evidence will show a longstanding commitment to youth protection. Meta has also previously responded to scrutiny over internal chatbot guidelines involving minors, saying it revised policies to remove allowances for romantic or flirtatious interactions with children.

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