U.S. Virgin Islands Sues Meta Over Scam Ads and Child Safety Failures

The attorney general of the U.S. Virgin Islands has filed a lawsuit against Meta Platforms, Inc., alleging that the company knowingly profits from advertisements promoting scams and fails to ensure the safety of children using its platforms.

Filed in the Superior Court of the Virgin Islands on St. Croix, the suit claims that Meta exposes users to fraud and harm to increase engagement and revenue. It also accuses the company of misleading the public about the safety of Facebook and Instagram, asserting that Meta does not consistently enforce its own safety policies.

The complaint references internal company documents indicating that Meta projected a significant portion of its 2024 revenue would come from ads linked to scams, illegal gambling, and banned products. It also alleges that Meta’s systems only block advertisers if algorithms are nearly certain of misconduct.

Attorney General Gordon C. Rhea described the case as the first action by a state or territorial attorney general to address widespread fraud and scams on Meta’s platforms. The lawsuit seeks penalties for violations of local consumer protection laws.

A Meta spokesperson said the company strongly disagrees with the allegations. The statement noted that scam reports from users have dropped by half over the past 18 months and reaffirmed the company’s confidence in its efforts to protect young users.