Meta is facing another lawsuit over scam ads on Facebook and Instagram
Source: Engadget
Matt Gush/Shutterstock
Lawsuit by Santa Clara County
Santa Clara County has become the latest entity to sue Meta over scam ads on Facebook and Instagram. The lawsuit, filed by County Counsel Tony LoPresti, alleges that Meta has profited from “a vast ecosystem of scam ads” that have defrauded senior citizens and other vulnerable people.
The complaint references a Reuters report from last year that cited internal documents detailing the billions of dollars scam advertisers have poured into Meta’s platforms. According to the filing, Meta makes as much as $7 billion a year from such ads and that the company’s own processes and policies have enabled scams.
“While our region has certainly benefited from the tech boom, we can’t sit idly by when we know good and well that a tech giant is swindling the public to hit a revenue target,” LoPresti said during a press conference.
Press conference video
Meta’s Response
In a statement, a Meta spokesperson said the company would fight the lawsuit:
“This claim relies on Reuters reporting that distorts our motives and ignores the full range of actions we take to combat scams every day. We aggressively fight scams on and off our platforms because they’re not good for us or the people and businesses that rely on our services. We removed over 159 million scam ads last year alone, launched new tools to protect people, and partnered with law enforcement around the globe to disrupt these criminals.”
Additional Scrutiny
-
Center for Countering Digital Hate (CCDH) report – The nonprofit watchdog published a report on Medicare‑related scam ads targeting seniors on Facebook. It found that Meta has made more than $14 million from Medicare scams, many involving repeat offenders whose ads had previously been removed. The scams also used tactics such as fake AI‑generated celebrity endorsements.
- Example of AI‑generated endorsement: Engadget article on Elon Musk‑style scams
-
Consumer Federation of America (CFA) lawsuit – Last month, the nonprofit filed a proposed class‑action lawsuit in Washington, D.C., claiming Meta violated consumer protection laws in its handling of scam advertisements. The suit highlighted ads promoting “free” iPhones and $1,400 checks.
Details on the CFA lawsuit