U.S. senators push for a Meta crackdown after reports of billions in scam ads

"Two U.S. senators are pushing the heads of the Federal Trade Commission and the Securities and Exchange Commission to probe Meta Platforms after a recent Reuters investigation revealed the social media giant earned $16 billion from advertising scams and banned goods in 2024. A letter from Senators Josh Hawley (R‑MO) and Richard Blumenthal (D‑CT) to the agencies calls for a full investigation into Meta, pointing out that internal documents show Meta earned about 10% of its annual revenue from scam and fraudulent ads last year."

"The senators warn that Meta's platforms may have facilitated more than a third of all successful U.S. scams, potentially driving over $50 billion in consumer losses. They highlight continued ads for illicit gambling, fake benefits, crypto fraud, and deepfake sex content in Meta's Ad Library, even as the company cuts safety staff. They urge regulators to force Meta to disgorge fraud-related profits, impose civil penalties, hold executives personally accountable, and implement binding reforms."

"In response to the Reuters report, Meta told the news outlet it had reduced user reports of scams by 58% over the last eighteen months and that the written letter "makes claims that are exaggerated and wrong." "We aggressively fight fraud and scams because people on our platforms don't want this content, legitimate advertisers don't want it and we don't want it either," Meta spokesman Andy Stone told Reuters."

Senators Josh Hawley and Richard Blumenthal urged the FTC and SEC to investigate Meta after internal documents showed the company earned about 10% of its annual revenue from scam and fraudulent ads in 2024, totaling roughly $16 billion. They warned Meta's platforms may have facilitated more than a third of all successful U.S. scams, potentially driving over $50 billion in consumer losses. They noted continued advertising for illicit gambling, fake benefits, crypto fraud, and deepfake sex content in Meta's Ad Library while the company cut safety staff. The senators seek disgorgement of fraud-related profits, civil penalties, executive accountability, and binding reforms. Meta said user reports of scams fell 58% in eighteen months and called the claims exaggerated and wrong.

Read at MUO