Meta Platforms Faces Lawsuit Over Profits from Scam Ads

The U.S. Virgin Islands has filed a lawsuit against Meta Platforms, citing its profits from scam advertisements and alleging a failure to safeguard social media platforms for children. The lawsuit references a Reuters report detailing Meta's projected revenue from scams and its inadequate response to advertisers engaged in deceptive practices.

The Attorney General of the U.S. Virgin Islands has taken legal action against Meta Platforms, alleging that the company has been complicit in profiting from fraudulent advertisements. The lawsuit, filed in the Superior Court of the Virgin Islands on St. Croix, claims that Meta has knowingly exposed its users to scams to increase revenue.

According to the lawsuit, a recent Reuters article highlighted how Meta projected that scams, illegal gambling, and banned products would constitute approximately $16 billion of its 2024 revenue. This has prompted U.S. senators to urge regulatory bodies to scrutinize the issue further. In response, Meta refuted the allegations, asserting its efforts to mitigate fraud.

The lawsuit also accuses Meta of misleading the public about the safety of its platforms, particularly concerning children. However, Meta spokesperson Andy Stone stated that user reports of scams have decreased by half, and the company remains dedicated to protecting young users. Meta emphasizes its commitment to combating fraudulent content on its platforms.

(With inputs from agencies.)