Santa Clara County has sued Meta, alleging the company profits from “a vast ecosystem of scam ads” on Facebook and Instagram that target senior citizens and other vulnerable populations. The lawsuit, initiated by County Counsel Tony LoPresti, claims Meta generates as much as $7 billion annually from these fraudulent advertisements.
The filing references a Reuters report detailing billions spent by scam advertisers on Meta’s platforms and asserts that the company’s processes and policies have facilitated these scams. LoPresti stressed that this is the first case brought by a local civil prosecutor against a tech giant over such issues, stating, “While our region has certainly benefited from the tech boom, we can’t sit idly by when we know good and well that a tech giant is swindling the public to hit a revenue target.”
A Meta spokesperson stated the company will contest the lawsuit, claiming the suit misrepresents their efforts against scams. The representative said, “This claim relies on Reuters reporting that distorts our motives and ignores the full range of actions we take to combat scams every day.” They highlighted that Meta removed over 159 million scam ads last year and launched new protective tools to combat fraudulent activities.
Meta has faced increased scrutiny for its management of scam advertisers. A recent report by the Center for Countering Digital Hate (CCDH) identified that Meta made over $14 million from Medicare-related scam ads targeting seniors. The report noted that many scammers were repeat offenders whose ads had been previously removed by the platform, using tactics such as fake AI-generated celebrity endorsements to mislead consumers.
In response to the ongoing criticism, Meta reaffirmed its commitment to fighting scams. The company acknowledged that scammers employ increasingly sophisticated tactics to deceive people and evade detection. “Scammers are determined criminals who use increasingly sophisticated tactics to defraud people and evade detection on our platforms and across the internet,” Meta said.
In addition to the Santa Clara County lawsuit, Meta was also sued last month by the Consumer Federation of America (CFA) in Washington D.C. This proposed class action lawsuit alleges that Meta violated consumer protection laws concerning scam advertisements, including ads promoting “free” iPhones and $1,400 checks.
