Meta Platforms Inc., the parent company of Facebook and Instagram, has been sued by the Government of the US Virgin Islands (USVI), accusing the tech giant of allowing scam advertisements to flourish across its platforms. The lawsuit claims that Meta knowingly profited from deceptive ads that targeted vulnerable users, including seniors and young people, despite being aware of their harmful impact.

Allegations of Ignoring Repeated Warnings

According to the complaint, Meta allegedly received thousands of reports warning about fraudulent advertisements impersonating public figures, financial institutions, and legitimate businesses. The USVI government argues that instead of acting decisively, the company continued to approve and monetize such ads, prioritizing revenue over user safety.

Concerns Over Children’s Exposure

A significant portion of the lawsuit focuses on the alleged dangers posed to children. The filing claims Meta’s platforms exposed minors to scams, inappropriate content, and manipulative advertising practices. Authorities argue that insufficient safeguards were in place to prevent children from being targeted or harmed, despite Meta’s public commitments to child safety.

Claims of Violating Consumer Protection Laws

The US Virgin Islands alleges that Meta violated local consumer protection and anti-deceptive practices laws by failing to remove known scam content in a timely manner. The lawsuit seeks civil penalties, injunctive relief, and stronger enforcement measures to prevent similar issues in the future.

Meta’s Response and Broader Implications

Meta has consistently stated that it invests heavily in artificial intelligence, moderation teams, and safety tools to combat scams and protect users. However, this lawsuit adds to growing global scrutiny of how large tech platforms manage advertising integrity and child protection. Legal experts say the case could set an important precedent for holding social media companies accountable for third-party advertising content.

Growing Regulatory Pressure on Big Tech

The lawsuit comes amid increased regulatory pressure worldwide, with governments demanding stricter oversight of digital advertising, stronger protections for minors, and greater transparency in content moderation. If successful, the USVI’s case could encourage other jurisdictions to pursue similar legal action against major tech firms.