Isn't this Child Endangerment?

My 12 year old granddaughter was allowed to join Myspace. Their age limit is 14. She was allowed to pick from a list of words to state her mood on her home page. There are ually explicit words such as "HORNY" in the list of moods she can choose from. After reporting her real age to them, they refused to delete her account! I can't believe they are allowed to have 14 and 15 yr old girls join their site. Using words like horny is like waving a flag for visits from predators. Don't they watch that TV show!! Yes, parents should monitor their child's internet usage, but as in this one, that is not always the case. Who do I report them to? What legal action can I take against them. They really need to change their age limit to 18 or clean-up their website! This should not be allowed in this day and time!!