Meta Faces Flak for Child Exploitation via Subscription Tools on Facebook and Instagram
Portfolio Pulse from Anusuya Lahiri
Meta Platforms Inc (NASDAQ:META), the parent company of Facebook and Instagram, is under scrutiny for the misuse of its paid subscription tools, which have been exploited for child exploitation. Internal teams found 'parent-managed minor accounts' selling content to adults displaying sexual interest. Despite the absence of illegal content, some parents engaged with sexually explicit messages about their children. Meta's algorithms promoted such accounts to users with pedophilic interests, worsening the issue. The company is developing an automated system to restrict suspected pedophiles from subscribing to these accounts. Incidents of online enticement more than doubled in 2023 from 2022, with children falling prey to 'sextortion'. META shares are trading higher by 0.43% at $488.23.

February 23, 2024 | 3:36 pm
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Meta Platforms Inc faces significant backlash for the misuse of its subscription tools for child exploitation, with internal concerns and public scrutiny intensifying.
The negative publicity surrounding Meta's handling of child exploitation issues on its platforms could lead to a decrease in investor confidence and potentially harm the company's stock price in the short term. However, the current slight increase in share price indicates that the market has not yet reacted strongly to this news.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100