“Meta knowingly and intentionally exposes its users to fraud and harm. It does so to maximize user engagement and, in turn, its revenue,” states the lawsuit, which was filed in the Superior Court of the Virgin Islands on St. Croix. The lawsuit repeatedly cites an article by Reuters last month that revealed how Meta internally projected that 10% of its 2024 revenue, about $16 billion, 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’t block advertisers suspected of scams unless its algorithms are 95% certain that the marketer is engaging in misbehaviour.
Following the story, two US senators called on the Securities and Exchange Commission and the Federal Trade Commission to look into the matter and “pursue vigorous enforcement action where appropriate.”
The Virgin Islands lawsuit seeks penalties for violating its consumer laws. In a statement, Attorney General Gordon C. Rhea said it “marks the first effort by an attorney general to address reports of rampant fraud and scams on Meta’s platforms.”
The lawsuit also accuses Meta of misleading the public about its efforts to protect children and adults on its platforms, including Facebook and Instagram.
“Meta repeatedly touts the ‘safety’ of its platforms to its users, parents, regulators, and Congress,” the Virgin Islands lawsuit states. “Meta consistently, and intentionally, fails to implement the policies it writes.”
In response to the lawsuit, Meta Spokesperson, Andy Stone referred Reuters to past company statements calling allegations that it has failed to protect consumers baseless.
–Reuters–
