Whistleblowers Allege Meta Puts Children at Risk in VR Products

A group of six whistleblowers has reported allegations of a cover-up regarding harm to children from Meta’s virtual reality devices and applications. They assert that the social media giant, which owns Facebook and Instagram, produces a range of VR headsets and games.

“Meta was aware that minors were using its products, but they believed, ‘Hey, kids are driving engagement.’ Meta compromised internal teams, manipulated research, and discarded data that was unfavorable,” they stated.

Sattizahn and other current or former Meta employees, who are also whistleblowers, shared these revelations along with numerous documents with Congress. The Washington Post was the first to publish these claims. Sattizahn and Casesavage, the principal investigators focused on the VR experience for youth users, are set to testify before the US Senate Judiciary Subcommittee on Privacy, Technology and Law this Tuesday.


Meta spokesperson Dani Lever stated that the company has authorized 180 studies concerning VR reality labs since 2022.

“Some of these instances are cherry-picked to support a misleading narrative,” she remarked. Meta further claimed that it has installed features in its VR products to reduce unwanted interactions and provide supervision tools for parents.

The whistleblower allegations were released on Monday, asserting that Meta’s VR products could take further steps to enhance child safety. The whistleblower stated that a company manager directed staff to avoid research that could reveal instances of harm to children in virtual reality.

In one instance, researchers were reportedly instructed to “ignore issues like that.”

In another case, the Washington Post reported that researchers were directed to omit details from interviews conducted with German families. One teenager recounted that his younger brothers, under 10, “often encountered strangers” in Meta’s VR, with “adults making sexual suggestions to his younger brother.”

These claims emerge amidst a steady stream of former Meta employees speaking out against the company for failing to adequately safeguard children from the dangers posed by its social media products. Lawmakers have also criticized Meta executives for promoting content that encourages bullying, substance abuse, and self-harm among young people.

During a Congressional hearing in January 2024, Republican Sen. Josh Hawley compelled Meta CEO Mark Zuckerberg to publicly express regret.

“I’m sorry for everything you and your family have endured,” Zuckerberg acknowledged at that time. “No one should have to suffer what your family has experienced. This is why we invest heavily and will continue to collaborate across the industry to prevent such suffering.”

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Tennessee Republican Sen. Marsha Blackburn stated that Meta’s disclosures regarding its VR products demonstrate the necessity for Congress to enact legislation establishing regulations for social media companies.

“Rather than addressing significant concerns about widespread harm to children on the platform, Meta chose to conceal damning evidence and suppress the voices of innocent children for its interests,” Blackburn criticized. “These whistleblowers deserve commendation for their bravery in revealing Meta’s deceitful practices.”

The six whistleblowers are represented by a legal non-profit organization supporting whistleblowers and are expected to testify before the subcommittee on Tuesday.

Current and former Meta employees have submitted detailed disclosures to Congress, the Securities and Exchange Commission, and the Federal Trade Commission.

Source: www.theguardian.com

Start-up founders allege that investors undermined their company with false user accusations in real life

IRL founders Abraham Shafi and Genrik Khachatryan are suing investors for intentionally sabotaging the company.

At its peak, IRL was poised to become an alternative way to host events for Gen Z, who were using Facebook less and less.

CEO Shafi said: Paused It was ordered by IRL in April to investigate allegations of misconduct. In June, IRL’s board of directors discovered after an investigation that 95% of the company’s 20 million users were fake. The founders now claim investors accounted for the 95% figure “as an excuse to shut down the company and return capital to shareholders.”

The lawsuit specifically names Goodwater Capital’s Chihua Qian, SoftBank’s Selina Dale, and Floodgate’s Mike Maples. From these investors his social calendar app raised more than $200 million and the valuation brought him $1.17 billion. Notably, SoftBank led IRL’s $170 million Series C round in 2021. Mr. Shafi and Mr. Khachatryan accused the investors of wanting to shut down the company because they were “trying to finance a large portion of the company’s $40 million in cash reserves.”

Although IRL is defunct, the remaining board members deny the founders’ claims.

“Immediately after the Shafi outage, IRL experienced a significant drop in the number of daily active users virtually overnight. This was not due to an outage,” IRL and its board said in a statement, and an IRL spokesperson said: Elliott Sloan shared with TechCrunch. The same report that found 95% of users are fake also cited “the existence of private groups with millions of duplicate names, irregular signatures from Hotmail, Yahoo email addresses, and burner email addresses. The statement said they also discovered “suspicious user behavior such as Said. Forensic reports show that his IP address from proxy-his servers was used extensively, with individual accounts cycling through his IP address and device type, which could be linked to user behavior. indicates that it is invalid.

“Based on this, and evidence of Shafi’s misappropriation of company funds and repeated obstruction of investigations, the board, after several months of consideration, has concluded that the company’s future prospects are unsustainable.” The statement concludes.

As of December of last year, the SEC. ongoing investigation IRL may have misled investors and violated securities laws.

IRL is just one once-hot start-up that has come under fire for potentially tampered metrics. Investors say Bolt and co-founder Ryan Breslow of the giant one-click checkout company misrepresented the company’s financials as it sought to raise $355 million in a Series E round. raised concerns and faced SEC investigation. But 15 months later, the SEC said the company likely not to be prosecuted. And earlier this year, the SEC charged student financial aid startup Frank with defrauding JPMorgan, which acquired the company for $175 million in 2021. JPMorgan has filed a lawsuit accusing Frank’s founder Charlie Jarvis of defrauding millions of customers to get her bank to buy her. company.

IRL lawsuit by tech crunch On Scribd

Source: techcrunch.com