Santa Clara County accuses Meta of profiting from fraudulent ads on Facebook and Instagram, seeking damages and policy changes.
Santa Clara County filed a lawsuit against Meta Platforms, alleging the company earned up to $7 billion annually from scam advertisements on Facebook and Instagram. The suit claims Meta tolerated fraudulent ads despite clear signs of misconduct, prioritizing revenue over enforcement efforts.
The lawsuit, representing all California residents, cites internal documents showing Meta established guardrails to limit scam reduction if it impacted profits. It also accuses Meta of allowing middlemen to sell ad accounts protected from enforcement and targeting users who previously engaged with scams.
The county seeks restitution, civil damages, and an injunction to halt Meta’s alleged unfair business practices. The suit highlights Meta’s generative AI tools as aiding unethical marketers in creating fraudulent ads.