Meta is sued over ads for scams, dangers to children
The owner of Facebook and Instagram is accused of knowingly exposing users to fraud and being misleading about its efforts to protect children and adults.
Meta Platforms is being sued in the US Virgin Islands, accused of deliberately profiting from advertisements for scams and failing to keep its social media platforms safe for children.
âMeta knowingly and intentionally exposes â its users to fraud and harm. It does so to maximise user engagement and, in turn, its revenue,â states the lawsuit, which was filed by the US territoryâs attorney general in the Superior Court of the Virgin Islands on St Croix.
The lawsuit repeatedly cites an article by Reuters in November that revealed how Meta internally projected that 10 per cent of its 2024 revenue â about $US16 billion ($A24 billion) â would come from ads for scams, illegal gambling and âbanned products.
Based âon a cache of internal company documents, the article also reported Meta doesnât block advertisers suspected of âscams unless its algorithms are 95 per cent certain 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 âpursue vigorous enforcement action where appropriateâ.
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The Virgin Islands lawsuit seeks penalties for violating its consumer laws.
In a statement, Attorney General Gordon C Rhea said it âmarks the first effort by an attorney general âto address reports of rampant fraud and scams on Metaâs platformsâ.
The âlawsuit also accuses Meta of misleading the public about its efforts to protect children and adults on its platforms, including Facebook and Instagram.
âMeta repeatedly touts the âsafetyâ of âits platforms to its users, parents, regulators, and Congress,â the Virgin Islands lawsuit states.
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âMeta consistently, and intentionally, fails to implement the âpolicies it writes.â
In response to the lawsuit, Meta spokesman Andy Stone referred Reuters to past company statements calling allegations it has failed to protect consumers baseless.
âWe aggressively fight fraud and scams because people on our platforms donât want âthis âcontent, legitimate advertisers donât want it and we donât âwant it either,â he said, adding that scam reports from users âof Metaâs platforms have fallen by half over the last 18 months.
Stone said that the claims regarding Metaâs failure to make the platform safe for young users were also without merit.
âWe strongly disagree with these allegations and are confident the evidence will show our longstanding commitment to supporting young people,â he said.
In August, Reuters reported that an internal Meta document outlining its policies on chatbot behaviour permitted the companyâs artificial intelligence creations to âengage a child in conversations that are romantic or sensualâ.
Meta responded to that report by saying it removed portions âof the guidelines that allowed chatbots to flirt and engage in romantic roleplay with minors.
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