"The lawsuit filed earlier this week by Santa Clara County alleges that Meta knowingly profits from scam advertising, which it says generated $7bn in annual revenue. It is the latest US lawsuit to challenge the social media company's ethics, following a landmark ruling in March that found the company harmed young users with intentionally addictive design features. Meta, which made more than $200bn in revenue in 2025, has also faced a separate lawsuit filed by the Consumer Federation of America, which said its approach towards scammers violates consumer protection laws."
"The lawsuit alleges that Meta both facilitates and monetises deception in how it moderates its advertisements, according to Santa Clara County. Far from scam advertisements being blocked, likely offenders are simply flagged by Meta's system. Meta only banned marketers it was 95 percent certain were commiting fraud, according to Meta's internal documents. Suspected scammers below that threshold are then charged a premium fee to continue running the advertisements, according to a 2025 investigation by the news agency Reuters."
"The lawsuit says that Meta's sophisticated artificial intelligence and programme tools actively target vulnerable consumers. The scams include fraudulent financial products, cryptocurrency schemes, purported cures for incurable diseases, ineffective nutritional supplements, and impersonations of celebrities asking for monetary contributions. Behind every one of the billions of scam ads Meta runs each day, there are real people at risk. Too often, it's the most vulnerable people who suffer the harshest impacts, Santa Clara County Counsel Tony L"
Santa Clara County filed a lawsuit against Meta Platforms, alleging Meta knowingly profits from scam advertising. The county claims scam ads generated about $7 billion in annual revenue and that Meta facilitates and monetizes deception through its ad moderation practices. The lawsuit alleges Meta flags likely offenders rather than blocking them, and that marketers are banned only when Meta is about 95% certain they are committing fraud. The county further alleges that suspected scammers below that threshold are charged premium fees to keep running ads. It also alleges Meta’s AI and program tools target vulnerable consumers, including scams involving financial products, cryptocurrency schemes, fake cures, ineffective supplements, and celebrity impersonations seeking money.
Read at www.aljazeera.com
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