Meta platforms are under surveillance for illegal drug advertising

Meta Platforms (META) is facing increasing criticism from lawmakers for advertising opioids and other illegal drugs on its Facebook and Instagram platforms. A bipartisan group of 19 U.S. lawmakers has sent a letter to Meta CEO Mark Zuckerberg demanding an explanation of how the company is handling these banned ads.

Importantly, the letter points to a recent rise in ads for prescription drugs, cocaine and other drugs, and their availability on Meta's platforms. Lawmakers have accused the company of neglecting its social responsibility and violating community guidelines.

Meta must answer about 15 questions listed in the letter by September 6. These questions concern the number of illegal drug ads on the platform, the steps taken to address the problem and whether users were targeted based on personal health information.

Ongoing investigation

Investors should be aware that this investigation comes amid a federal probe into whether Meta facilitated and profited from drug sales. Despite the increased scrutiny, Meta has continued to allow these ads to run, something lawmakers find particularly concerning.

Meta has acknowledged the existence of these ads and claims to remove them within 48 hours of their discovery, but lawmakers argue that this response is inadequate.

It will be interesting to see how Meta responds to these demands and what steps the company will take to prevent such malicious ads from occurring again.

Should Meta be bought, held or sold?

On TipRanks, META has a consensus rating of Strong Buy based on 24 buy recommendations, two hold recommendations, and two sell recommendations from analysts over the past three months. The average analyst price target for Meta Platforms stock of $549.35 implies an upside potential of 2.24%.

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