"The demand follows a Reuters investigation reportedly based on internal Meta documents that estimated that nearly 10% of Meta's 2024 revenue -- about $16 billion -- came from alleged "illicit advertising." In a letter to the Federal Trade Commission and the Securities and Exchange Commission, the lawmakers urged regulators to "immediately open investigations and, if the reporting is accurate, pursue vigorous enforcement action ... to force Meta to disgorge profits, pay penalties and agree to cease running such advertisements.""
"The scale of this alleged fraud raises serious concerns about Meta's business model. Many question whether the company is doing enough to police its ad ecosystem, given that a major revenue stream appears to be tied to deceptive or outright fraudulent campaigns. The senators allege that Meta's lax enforcement -- combined with the continued presence of gambling ads, payment scams, and other dangerous content in its public Ad Library -- underscores significant risks."
Senators Josh Hawley and Richard Blumenthal asked the Federal Trade Commission and the Securities and Exchange Commission to open investigations into Meta over alleged profits from scam ads on Facebook and Instagram. Internal Meta documents reportedly estimated nearly 10% of 2024 revenue—about $16 billion—came from alleged illicit advertising, and one document said $3.5 billion was earned in six months from "higher-risk" scam ads. Records reportedly showed many ads staff believed violated the spirit of fraud rules were permitted to run. The senators seek disgorgement, penalties, and an end to such ads. Meta denies the allegations. Gambling ads, payment scams, and a cited 58% reduction raise concerns about ad policing.
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