Santa Clara County files lawsuit against Meta alleging widespread scam ads
Santa Clara County sued Meta for knowingly profiting from scam ads that defraud users on Facebook and Instagram.Summary
Santa Clara County filed a lawsuit against Meta on May 11, alleging that the Menlo Park-based company knowingly enables and profits from a large network of scam advertisements on Facebook and Instagram. The lawsuit, filed by county legal counsel Tony LoPresti, claims these scams bring in $7 billion in revenue for Meta and expose users to 15 billion scam ads daily, contributing to $2.5 billion in fraudulent financial losses in 2024. "Meta's platforms have become a preferred hunting ground for scammers," LoPresti stated, adding that "no corporation is above the law." Meta disputes the claims, with spokesperson Tracy Clayton stating the company aggressively fights scams, having removed over 159 million scam ads last year. The lawsuit, filed in Santa Clara County Superior Court, seeks injunctive relief, restitution, and civil penalties, characterizing it as a "landmark civil prosecution." It alleges Meta's internal systems flag potential scams but charge scammers a premium to run them, and that the company provides AI tools and "trusted" business partners that bolster these schemes. The complaint also notes Meta laid off staff dedicated to anti-scam efforts and declined to adopt universal advertiser verification measures.
(Sourceļ¼Palo Alto Online)