Attorney General Accuses Meta of Prioritizing Profit Over User Safety
On Tuesday, the Attorney General of the U.S. Virgin Islands filed a lawsuit in the local Superior Court in St. Croix against the social media giant Meta, the parent company of Facebook and Instagram. The complaint alleges that Meta intentionally risks platform users to fraud and physical and emotional harm in a bid to maximize user engagement and thereby increase revenue. The lawsuit centers on the accusation that Meta not only failed to clean up harmful content on its platforms but also reaped significant illegal profits from fraudulent ads, illegal gambling, and the marketing of prohibited products. Attorney General Gordon Rehea of the U.S. Virgin Islands emphasized in a statement that this marks the first formal legal response to rampant fraud on the Meta platform, aimed at punishing violations of consumer protection laws.
Internal Documents Reveal Fraudulent Ads Contribute Billions in Revenue
A key piece of evidence cited in the lawsuit originates from a Meta internal document disclosed last month. The report reveals that Meta internally estimates that 10% of its total revenue for 2024, approximately $16 billion, will come from advertisements suspected of being fraudulent or illegal. Even more shocking is that Meta's internal audit algorithm is set with a high intervention threshold: unless the system is 95% confident of a marketer's misconduct, it will not block suspicious advertisers. This near-lax regulatory attitude has sparked a strong reaction in U.S. politics, with several senators publicly calling for the U.S. Securities and Exchange Commission (SEC) and the Federal Trade Commission (FTC) to investigate and take firm enforcement actions.
Platform Safety Promotion Accused of Misleading the Public and Congress
In addition to economic allegations, the lawsuit criticizes Meta for serious misleading behavior in protecting children and adult users. The plaintiff argues that Meta has repeatedly declared to the public, parents, regulatory agencies, and Congress that its platforms are highly secure, while deliberately failing to enforce its own policies. Especially in terms of protecting young users, a report in August revealed that Meta's chatbot policy document even allowed AI products to have inappropriate conversations with minors. Although Meta subsequently removed the guidelines, this was seen as evidence of long-term governance failure on its platforms. The lawsuit claims that this discrepancy between word and deed constitutes consumer fraud.
Meta Strongly Responds to Accusations as Unfounded
In response to the serious accusations, Meta spokesperson Andy Stone issued a statement firmly denying the allegations. He insisted that the accusations are without factual basis and emphasized that Meta has actively fought against fraudulent content, as such content harms user experience and the interests of legitimate advertisers. Stone added that over the past 18 months, user fraud reports on the platform have halved. Regarding children's safety, Meta expressed confidence that evidence will prove the company’s longstanding commitment to supporting young people. As the legal proceedings continue, the debate on whether tech giants sacrifice public interest for profit in algorithm recommendations and content review will become the focus of this case.
