US EditionMeta profited billions from scam ads while misleading users: lawsuit
The complaint says Meta let scammers buy targeted ads and charged high-risk advertisers more, while internal projections put scam revenue at $16 billion.
- The Consumer Federation of America filed a class-action lawsuit in Washington, D.C., alleging Meta Platforms knowingly profited from scam advertisements on Facebook and Instagram while misleading users about its enforcement efforts.
- Lawsuit documents allege Meta allows scam ads disguised as government benefits—such as "$1,400 checks"—to remain active while charging risky advertisers higher fees to maximize profit from fraudulent content.
- Internal documents cited in the complaint suggest Meta estimated it shows users 15 billion scam ads daily; a Reuters report found the company developed an internal "playbook" to neutralize regulators.
- A Meta spokesperson told FOX Television Stations the allegations "misrepresent the reality of our work," noting the company removed over 159 million scam ads last year with 92% caught proactively.
- This filing joins a convergence of legal actions across Australia, the United Kingdom, and the United States, with Meta's internal projections indicating approximately 10% of its annual advertising income—roughly $16 billion—originated from scams.
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13 Articles
Watchdog group sues Meta over ads
The Consumer Federation of America has filed a class-action complaint against Meta Platforms alleging the social-media giant profited from advertising for fraudulent activities on its platforms and misled users about its efforts to combat the problem.
News & Record
Winston-Salem JournalWatchdog group sues Meta over scam ads
The Consumer Federation of America has filed a class-action complaint against Meta Platforms alleging the social-media giant profited from advertising for fraudulent activities on its platforms and misled users about its efforts to combat the problem.
Meta sued over scam ads on Facebook and Instagram as internal documents reveal $16 billion in projected fraud revenue
Meta faces lawsuits across the US, Australia, and UK over scam ads. Internal documents show the company projected 10% of 2024 revenue came from fraudulent advertising.
Meta Accused of ‘Knowingly’ Generating $16,000,000,000 From Scam Ads
The Consumer Federation of America (CFA) has filed a class-action lawsuit against Meta Platforms, accusing the social media giant of failing to protect users from scam advertisements. The CFA, an association of non-profit consumer organizations, is seeking to recover damages and illegal profits after filing the Superior Court lawsuit in Washington, D.C. Says the complaint, “Meta claims it is doing all it can to crack down on scam advertising on …
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