"Santa Clara County has sued Meta Platforms in California state court, alleging the company profits from scam advertising on Facebook and Instagram in violation of California's false-advertising and unfair-business-practices laws. The lawsuit, filed on Monday in Santa Clara County Superior Court on behalf of all California residents, alleges that Meta earns as much as $7bn in annual revenue from advertisements that bear clear signs of fraud."
"The complaint says Meta "largely tolerated" the misconduct and established internal guardrails to block scam-reduction efforts that cost the company too much money. The county also alleges that Meta allowed middlemen to sell ad accounts that were protected against enforcement and that the company targeted scam ads at users who had clicked on similar fraudulent listings before."
"The complaint draws on internal documents first reported by Reuters in November 2025, which indicated that Meta's own projections expected more than 10% of its 2024 annual revenue, roughly $16bn, to come from advertising scams and banned goods. Earlier private litigation from the Consumer Federation of America cited the same set of documents."
"The lawsuit seeks restitution for affected California residents, civil damages and an order prohibiting Meta from continuing the alleged practices. Meta did not immediately respond to a request for comment. The company has previously said it removes scam content and has dedicated teams working to enforce its policies."
Santa Clara County sued Meta Platforms in California state court on behalf of all California residents, alleging Meta profits from “high-risk” scam advertising on Facebook and Instagram. The complaint claims Meta earns up to $7 billion annually from ads that show clear signs of fraud and that Meta largely tolerated the misconduct. It alleges Meta established internal guardrails that blocked scam-reduction efforts because they would cost the company money. The county also alleges Meta allowed middlemen to sell ad accounts protected against enforcement and targeted scam ads at users who previously clicked similar fraudulent listings. The lawsuit seeks restitution, civil damages, and an injunction. It cites internal documents indicating Meta projected more than 10% of 2024 revenue from advertising scams and banned goods.
#meta-platforms #scam-advertising #false-advertising #unfair-business-practices #consumer-protection
Read at TNW | Meta
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