“Meta knowingly and intentionally exposes its users to fraud and harm. It does so to maximize user engagement and, in turn, its revenue,” asserts the lawsuit, which was submitted to the Superior Court of the Virgin Islands on St. Croix.
The lawsuit frequently references a recent Reuters article that disclosed Meta’s internal projections, indicating that 10% of its revenue for 2024—approximately $16 billion—would stem from ads promoting scams, illegal gambling, and prohibited products. The article, based on a series of internal documents, also noted that Meta does not block advertisers suspected of scams unless its algorithms are 95% certain that the advertiser is participating in misconduct.
In light of this report, two US senators have urged the Securities and Exchange Commission and the Federal Trade Commission to investigate the issue and “pursue vigorous enforcement action where appropriate.”
The Virgin Islands lawsuit aims to impose penalties for breaches of its consumer protection laws. In a statement, Attorney General Gordon C. Rhea remarked that it “represents the first initiative by an attorney general to tackle allegations of widespread fraud and scams on Meta’s platforms.”
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The suit also claims that Meta has misled the public regarding its safety measures for both children and adults on its platforms, including Facebook and Instagram.
“Meta repeatedly boasts about the ‘safety’ of its platforms to its users, parents, regulators, and Congress,” the Virgin Islands lawsuit claims. “Meta consistently, and deliberately, fails to implement the policies it announces.”
In response, Meta spokesperson Andy Stone pointed Reuters to previous company statements dismissing allegations of its failure to protect consumers as unfounded.
“We vigorously combat fraud and scams because our users do not want this content, legitimate advertisers do not want it, and we do not want it either,” he noted, adding that reports of scams from users on Meta’s platforms have decreased by 50% over the past 18 months.
Stone further emphasized that claims regarding Meta’s inadequacy in safeguarding young users are also unfounded.
“We strongly disagree with these allegations and are confident the evidence will demonstrate our longstanding dedication to supporting young people,” he stated.
In August, Reuters reported that an internal Meta document detailing its chatbot behavior policies allowed the company’s AI creations to “engage a child in conversations that are romantic or sensual.” Meta responded to this report by claiming it had removed sections of the guidelines that permitted chatbots to flirt and engage in romantic roleplay with minors.
