VIDOJ Sues Meta Over Child Safety and Online Fraud

The U.S. Virgin Islands Justice Department has filed a lawsuit against Meta Platforms Inc. and its subsidiaries, accusing the company of failing to protect children and allowing widespread fraud on Facebook and Instagram, according to a DOJ press release.

Attorney General Gordon C. Rhea announced the filing Monday, saying the case seeks to protect Virgin Islands teens, children and residents affected by scams. The lawsuit was filed in Superior Court on St. Croix, the press release stated.

“With this lawsuit, the Virgin Islands not only joins 42 other state attorneys general who have taken Meta to court for its failures to protect children and to honestly disclose the risks on its platforms, but expands their efforts by seeking to hold Meta accountable for knowingly facilitating, failing to address, and richly profiting from widespread fraud on its platforms,” the complaint states.

According to the complaint, Meta knowingly profited from fraudulent advertising and projected that about 10% of its 2025 revenue would come from fraudulent ads. The filing also alleges the company detected ads it believed were fraudulent but allowed them to remain online while charging fraudsters more to advertise.

The lawsuit further alleges that Meta allowed fraudsters to use its algorithms and user data to target vulnerable users, including the elderly, and adopted platform designs that foster addiction and mental health harms among teens. It also claims Meta’s platforms became places where predators groom and exploit children, while the company failed to follow through on public safety promises, according to the filing, the release stated.

The DOJ says Meta violated the Virgin Islands Consumer Protection Law of 1973 and the Consumer Fraud and Deceptive Business Practices Act. The lawsuit seeks injunctive relief, civil penalties and disgorgement of profits, the release stated.

Residents who believe they were victims of fraud or abuse on Meta platforms are encouraged to report their experiences to the DOJ Special Investigations Division. Reports may be directed to Joycelyn Conner at joycelyn.conner@doj.vi.gov or by telephone at 340-774-5666, ext. 10343.