"Earlier this month, Reuters reported internal documents from late 2024 stated Meta expected to earn about 10% of its revenue that year, about $16 billion, from illicit advertising. One document noted Meta earns $3.5 billion in revenue from "higher risk" scam ads every six months. Other documents stated that Meta's anti-fraud rules didn't appear to apply to many ads that regulators and the company's own staff believed "violated the spirit" of its rules against scam advertising."
"In response to the Reuters report, Meta said it had reduced user reports of scams by 58% over the last eighteen months. "The FTC and SEC should immediately open investigations and, if the reporting is accurate, pursue vigorous enforcement action where appropriate" to force Meta to disgorge profits, pay penalties and agree to cease running such advertisements, Hawley and Blumenthal wrote in a letter to the federal agencies."
""Even a short review of Meta's Ad Library at the time of this letter shows clearly identifiable advertisements for illicit gambling, payment scams, crypto scams, AI deepfake sex services, and fake offers of federal benefits," they wrote."
U.S. Senators Josh Hawley and Richard Blumenthal asked the Federal Trade Commission and Securities and Exchange Commission to investigate revenue from Facebook and Instagram ads that promote scams and banned goods. Reuters reported internal documents showing Meta expected about 10% of 2024 revenue, roughly $16 billion, from illicit advertising and $3.5 billion every six months from "higher risk" scam ads. The documents said many ads escaped anti-fraud rules. Meta reported a 58% reduction in user scam reports over 18 months. The senators urged enforcement actions including disgorgement, penalties, and stopping such advertisements, citing Meta's public Ad Library.
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