Rhode Island sues Meta over alleged tolerance for scam advertising
The state says Meta’s ad systems helped scammers reach vulnerable users, and internal documents suggest the company earned about 10% of 2024 revenue from banned marketing.
- On Thursday, Rhode Island Attorney General Peter Neronha filed suit in Providence Superior Court accusing Meta Platforms of unlawfully profiting from billions of dollars in fraudulent advertising across Facebook, Instagram, and WhatsApp.
- Internal Meta documents obtained by Reuters reveal the company displays around 15 billion "higher risk" scam ads daily and earned roughly 10% of its 2024 revenue from fraudulent e-commerce and banned marketing.
- Fraudulent ads often targeted elderly people, with one campaign promising to reverse Alzheimer's in 45 days, while Meta's AI tools allegedly optimized such ads and sometimes charged extra penalties instead of blocking advertisers.
- Meta spokesperson Andy Stone called the lawsuit "concocted," claiming the company removed more than 159 million scam ads in the past year and aggressively fights fraud on its platforms.
- This action follows a $25 billion judgment against Meta in New Mexico and an $18 billion children's safety settlement, though US Attorney General Todd Blanche recently praised the company at a White House event as an "incredible partner.
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The American State of Rhode Island entered with a lawsuit against Meta on Thursday (22), accusing the company of tolerating the widespread dissemination of fraudulent ads on its Facebook, Instagram and WhatsApp platforms. The action, presented by Attorney General Peter Neronha at the Superior Court of Providence, claims that Meta illegally profited with billions of dollars in fraudulent advertising and participated in the creation of these ads, …
Rhode Island sues Meta, becoming first state to allege Facebook parent company failed to block false advertising, scams - The Boston Globe
A complaint filed in Providence alleges the social media company made a substantial profit while promoting advertisements it knew peddled faulty products and financial scams.
Meta Sued by Rhode Island Over Alleged Fraudulent Ad Profiteering | 📲 LatestLY
Rhode Island has sued Meta, alleging it profited from scam advertisements across Facebook, Instagram and WhatsApp despite promising user protection. The lawsuit claims Meta’s AI tools helped optimize fraudulent campaigns and that around 15 billion higher-risk scam ads appeared daily. 📲 Meta Sued by Rhode Island Over Alleged Fraudulent Ad Profiteering.
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