Is Meta Platforms, Inc. (META) In Trouble Over Financial Scams On Platforms?

Meta Platforms, Inc. (NASDAQ:META) is one of the top stocks to buy for the long-term. On May 21, Meta Platforms, Inc. (NASDAQ:META) received complaints from European Union consumer groups over claims it does little to protect users on its platform from financial scams.

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The European Consumer Organization BEUC and 29 member groups have already filed the complaints with the European Commission. The complaints were filed under the Digital Services Act, which requires Meta Platforms and other internet service companies with large online platforms to increase efforts to protect users against illegal and harmful content.

“Meta, TikTok and Google not only fail to proactively remove fraudulent ads but also do little when being notified about such scams,” BEUC Director General Agustin Reyna said in a statement.

Consumer groups have already alleged that over 900 advertisements violate EU laws. While online platforms removed 27% of the flagged ads, 52% of the reports ended up rejected or ignored. Consumer protection groups are urging regulators to investigate whether Meta and other companies comply with the rules and to impose penalties for violations.

Meta Platforms, Inc. (NASDAQ:META) develops social media, consumer electronics like VR headsets, and AI. It primarily earns revenue from targeted advertising platforms.

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