Meta is sued by US Virgin Islands over ads for scams

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.



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 doesnt block advertisers suspected of scams unless its algorithms are 95% certain that the marketer is engaging in misbehavior.



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 “pursue vigorous enforcement action where appropriate.”



The Virgin Islands lawsuit seeks penalties for violating its consumer laws.



The lawsuit also accuses Meta of misleading the public about its efforts to protect children and adults on its platforms, including Facebook and Instagram.