US Virgin Islands Sues Meta Over Scam Advertisements and Child Safety Failures

The U.S. Virgin Islands has filed a high-profile lawsuit against Meta Platforms Inc., the parent company of Facebook and Instagram, accusing the social media giant of profiting from scam advertisements and failing to protect users—especially children—from dangerous content. 

Filed in the Superior Court of the Virgin Islands on St. Croix, the complaint alleges that Meta knowingly allowed misleading and harmful ads to operate on its platforms because they generated significant revenue, instead of enforcing its own safety policies.

According to the lawsuit, internal Meta projections showed that scam or fraudulent ads could account for roughly 10 % of the company’s 2024 revenue—about $16 billion—from content involving scams, illegal gambling, and other banned products. Opponents argue that Meta’s reliance on user engagement and ad income created incentives to tolerate harmful content. 

Attorney General Gordon C. Rhea states that the company “knowingly and intentionally exposes its users to fraud and harm” in pursuit of advertisement revenue, and that Meta’s platforms are not safe for children or adults as promised. The lawsuit also claims that Meta has misled the public about the effectiveness of its safety protections. 

Critics point to internal practices that allowed some fraudulent ads to remain online unless algorithms were 95 % certain they were harmful, delaying enforcement action and enabling scam campaigns to thrive. 

Meta has responded to the lawsuit by calling the allegations baseless, noting that it actively works to fight fraud and has reduced scam reports on its platforms. The company also insists it is committed to user safety, including for young people.

This legal action marks one of the first cases where a local attorney general has directly challenged Meta over widespread fraudulent advertising and child safety concerns. The outcome could have implications for how social platforms are regulated and held accountable for the content they host.