"The county alleges that Meta's internal documentation shows that the company's platforms host about one-third of all internet scams resulting in $2.5 billion in losses for California residents in 2024, county officials said. These scam advertisements boast products ranging from fake financial products and miracle cures for incurable diseases to recreations of celebrities requesting money and cryptocurrency scams. The lawsuit cites findings from a Reuters investigation that found internal Meta documents estimated 15 billion higher risk scam ads are shown to users"
Santa Clara County counsel sued Meta in Santa Clara County Superior Court, alleging Meta turned scam advertisements on Facebook and Instagram into a multibillion-dollar revenue stream. The lawsuit claims Meta knowingly allowed fraudulent ads to remain, charged higher prices for some flagged ads, and limited enforcement when fraud prevention threatened profits. County officials said Meta’s platforms host about one-third of internet scams, with California residents losing about $2.5 billion in 2024. The complaint cites internal documentation and Reuters findings that estimated billions of higher-risk scam ads are shown to users. The county alleges violations of California false advertising and unfair competition laws and seeks restitution, civil penalties, and a court order requiring changes to Meta’s practices.
#consumer-protection #online-advertising-fraud #false-advertising #unfair-competition #social-media-platforms
Read at www.mercurynews.com
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