Meta has misled users about scam ads on Facebook and Instagram, lawsuit says

Meta is facing a class-action lawsuit filed by the Consumer Federation of America (CFA) alleging the company misled users regarding scam ads on Facebook and Instagram. The CFA claims Meta knowingly allowed fraudulent advertisements to proliferate, prioritizing revenue over user protection, and violating consumer protection laws in Washington D.C. Examples cited include ads offering “free government iPhones” and false claims of financial assistance.

This lawsuit follows a Reuters report last year detailing internal Meta documents revealing the company profited significantly from ads promoting scams and prohibited goods, and that internal processes hindered efforts to combat malicious advertisers. The CFA alleges that instead of banning high-risk advertisers, Meta simply charges them higher fees, incentivizing the continuation of scam advertising.

Meta disputes the allegations, stating they “misrepresent the reality of our work” and that the company actively combats scams, removing 159 million scam ads and 10.9 million associated accounts in the past year. Meta claims to proactively remove 92% of scam ads before they are reported, emphasizing that scams are detrimental to their business as well.

(Source：Engadget)