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.
44 Articles
44 Articles
SCIENCE & TECH: Santa Clara County sues Meta for ‘actively’ scamming Californians
Facebook parent company Meta got hit with a lawsuit from Santa Clara County accusing the tech giant of “knowingly” and “actively” facilitating and profiting from billions of scam advertisements. The county cited a 2025 Reuters investigation that found internal Meta documents detailing how the company earned $7 billion from showing Facebook and Instagram users fraudulent ads. The lawsuit accuses Facebook parent company Meta of violating Californi…
The Record
Boston HeraldSilicon Valley county sues Meta, alleging it made billions from scam ads
Santa Clara County sued Meta on Monday, accusing the tech giant of turning scam advertisements on Facebook and Instagram into a multibillion-dollar revenue stream while Californians lost billions to online fraud. The lawsuit alleges Meta knowingly allowed fraudulent ads to remain on its platforms, charged higher prices for some flagged ads and limited enforcement when fraud prevention threatened the company’s bottom line. The case puts a Silicon…
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