US Virgin Islands lawsuit cites Reuters report of Meta projecting billions in revenue from scam adsMeta accused of misleading public on platform safety for children and adultsMeta denies allegations, cites reduced scam reports and commitment to youth safety<\/p>\n
Dec 30 (Reuters) – The attorney general of the U.S. Virgin Islands has sued Meta Platforms, accusing the Facebook and Instagram owner of deliberately profiting from advertisements for scams and failing to keep its social media platforms safe for children.<\/p>\n
\u201cMeta knowingly and intentionally exposes its users to fraud and harm. It does so to maximize user engagement and, in turn, its revenue,\u201d states the lawsuit, which was filed in the Superior Court of the Virgin Islands on St. Croix.<\/p>\n
Sign up here.<\/a><\/p>\n The lawsuit repeatedly cites an article by Reuters last month<\/a> that revealed how Meta internally projected that 10% of its 2024 revenue \u2013 about $16 billion \u2013 would come from ads for scams, illegal gambling and banned products. Based on a cache of internal company documents, the article also reported that Meta doesn\u2019t block advertisers suspected of scams unless its algorithms are 95% certain that the marketer is engaging in misbehavior.<\/p>\n Following the story, two U.S. senators called on the Securities and Exchange Commission and the Federal Trade Commission to look into the matter and \u201cpursue vigorous enforcement action where appropriate.\u201d<\/p>\n The Virgin Islands lawsuit seeks penalties for violating its consumer laws. In a statement, Attorney General Gordon C. Rhea said it \u201cmarks the first effort by an attorney general to address reports of rampant fraud and scams on Meta\u2019s platforms.\u201d<\/p>\n The lawsuit also accuses Meta of misleading the public about its efforts to protect children and adults on its platforms, including Facebook and Instagram.<\/p>\n \u201cMeta repeatedly touts the \u2018safety\u2019 of its platforms to its users, parents, regulators, and Congress,\u201d the Virgin Islands lawsuit states. \u201cMeta consistently, and intentionally, fails to implement the policies it writes.\u201d<\/p>\n In response to the lawsuit, Meta spokesman Andy Stone referred Reuters to past company statements calling allegations that it has failed to protect consumers baseless.<\/p>\n \u201cWe aggressively fight fraud and scams because people on our platforms don\u2019t want this content, legitimate advertisers don\u2019t want it and we don\u2019t want it either,\u201d he said, adding that scam reports from users of Meta\u2019s platforms have fallen by half over the last 18 months.<\/p>\n Stone said that the claims regarding Meta\u2019s failure to make the platform safe for young users were also without merit.<\/p>\n \u201cWe strongly disagree with these allegations and are confident the evidence will show our longstanding commitment to supporting young people,\u201d he said.<\/p>\n In August, Reuters reported that an internal Meta document outlining its policies on chatbot behavior permitted the company\u2019s artificial intelligence creations to \u201cengage a child in conversations that are romantic<\/a> or sensual.\u201d Meta responded to that report by saying it removed portions of the guidelines that allowed chatbots to flirt and engage in romantic roleplay with minors.<\/p>\n By Jeff Horwitz in Oakland, California. Edited by Steve Stecklow.<\/p>\n Our Standards: The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n