The U.S. Virgin Islands has formally filed a lawsuit against Meta Platforms, accusing the owner of Facebook and Instagram of profiting from scam advertisements while failing to protect users, especially children, from harm and deceptive content online. The lawsuit, lodged in the Superior Court of the Virgin Islands on St. Croix, alleges that Meta knowingly allowed harmful advertising on its platforms to maximize engagement and revenue.
According to court filings and related reports, the lawsuit claims Meta projected that about 10 % of its 2024 revenue, roughly $16 billion, came from ads tied to scams, illegal gambling, and banned products. The suit cites internal documents that suggest Meta’s systems do not block alleged scam advertisers unless its algorithms are at least 95 % certain of misbehavior, a threshold critics say allows widespread fraud to persist.
Attorney General Gordon C. Rhea argues that Meta’s public statements about safety on Facebook and Instagram are misleading, and that the company failed to enforce its own policies to protect both adults and children. “Meta knowingly and intentionally exposes its users to fraud and harm,” the complaint states, seeking civil penalties and injunctive relief under the territory’s consumer protection laws.
Legal experts say this action marks the first attorney general lawsuit targeting scam advertisements on social media at this scale. The case builds on earlier concerns raised by regulators and lawmakers about platform safety and the promotion of harmful content. U.S. senators previously urged federal agencies to investigate Meta’s advertising practices after similar internal reports were published.
In response, Meta spokesman Andy Stone reiterated the company’s stance that allegations of failing to protect users are unfounded, noting that reports of scams have fallen by about half over the past 18 months. Meta insists it aggressively fights fraud and deceptive content on its platforms.
Industry watchers say the lawsuit’s outcome could have broader implications for how social media platforms regulate ads, including how they handle deceptive or dangerous content targeted at vulnerable users.
The Meta lawsuit over scam ads and child safety continues to develop, underscoring escalating legal pressures on big tech to balance profits with user protection.
