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Meta Sued by California County Over Alleged Scam Ads on Social Media
County officials say Meta earned as much as $7 billion a year from fraudulent ads while limiting enforcement that could cut revenue.
- On Monday, Santa Clara County filed a civil lawsuit against Meta Platforms, alleging the company "knowingly facilitates and profits from billions of scam advertisements" on Facebook and Instagram.
- The complaint alleges Meta created internal "guardrails" that limited anti-scam efforts when enforcement threatened revenue, and the company adjusted scam ad volume to hit specific earnings targets.
- Meta allegedly earns $7 billion annually from fraudulent ads including "fraudulent financial products, cryptocurrency schemes, purported cures for incurable diseases, ineffective nutritional supplements, and impersonations of celebrities asking for monetary contributions," while capping fraud prevention efforts at 0.15% revenue impact.
- A Meta spokesperson said Monday the company will fight the lawsuit, arguing it removed 159 million scam ads last year and the legal action distorts the "full range" of anti-scam work done.
- County Counsel Tony LoPresti stated elderly, low-income, and minority residents are disproportionately impacted by scams, cautioning that "we can't allow poison into that bloodstream" of Silicon Valley.
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Santa Clara Co., trial lawyers sue Meta over Facebook, Instagram ‘scam ads’
SAN JOSE — Saying the parent company of Facebook and Instagram has "a serious problem," one of northern California's largest counties, together with trial lawyer partners, has headed to court against Meta in a bid to extract a payout and…
·United States
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The lawsuit seeks restitution, civil damages, and a court order prohibiting Meta from engaging in unfair business practices.
·Brazil
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Santa Clara County sues Meta in California alleging tech giant profited from Facebook, Instagram scam ads
Meta is being sued by a California prosecutor alleging that the tech giants is knowingly facilitating and profiting billions of dollars from scam ads on its social media platforms.
·United States
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Coverage Details
Total News Sources29
Leaning Left5Leaning Right5Center9Last UpdatedBias Distribution48% Center
Bias Distribution
- 48% of the sources are Center
48% Center
L 26%
C 48%
R 26%
Factuality
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