Meta Is Sued Over Scam Ads on Facebook and Instagram
WIRED • • business
Key Points:
- The Consumer Federation of America (CFA) filed a lawsuit against Meta, alleging that the company violates Washington, DC consumer protection laws by allowing fraudulent advertising to proliferate on its platforms despite promises to combat scams.
- CFA's complaint highlights scam ads in Meta’s ad library, including those targeting people by birth year with offers like $1,400 stimulus checks and free government iPhones, which CFA claims Meta profited from.
- Meta denies the allegations, with spokesperson Chris Sgro stating the claims misrepresent their efforts, noting they removed over 159 million scam ads in the past year and took down millions of associated accounts.
- Internal Meta documents reported by Reuters revealed that scam ads might constitute a significant portion of Meta’s revenue, with estimates suggesting up to $16 billion in 2024, though Meta disputes the accuracy of these figures.
- The lawsuit seeks damages, recovery of alleged illegal profits, and business reforms; meanwhile, state attorneys general have also pressured Meta to better address scam ads, particularly those linked to investment scams on WhatsApp.
