Orkut has been the center of legal attraction for Google and Google will shell out $8.5K USD for a defamatory article written by an anonymous user against a priest (via).
Brazilian court rejected Google’s argument that says it is not responsible for content posted on Orkut [Google even says that it cannot be held liable for content posted on its blogging platform, Blogger] and held the company liable for content on the site.
In November of 2009, Orkut was fined half a million dollar for a fake profile of race car driver, Rubens Barrichello. Recently Google shared the topmost countries that requested access to remove data and interestingly, Brazil and India are among the top countries, owing to Orkut popularity.
Orkut fails to control spam and like any other Google product, does not even have profanity filter [see the recent article on how YouTube is unable to control spam on the site].
Maybe it is time Google starts looking at this, before Facebook announces its world dominance.