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Meta Sued by California County Over Alleged Scam Ads on Social Media
County officials say Meta earned as much as $7 billion a year from fraudulent ads while limiting enforcement that could cut revenue.
- On Monday, Santa Clara County filed a civil lawsuit against Meta Platforms, alleging the company "knowingly facilitates and profits from billions of scam advertisements" on Facebook and Instagram.
- The complaint alleges Meta created internal "guardrails" that limited anti-scam efforts when enforcement threatened revenue, and the company adjusted scam ad volume to hit specific earnings targets.
- Meta allegedly earns $7 billion annually from fraudulent ads including "fraudulent financial products, cryptocurrency schemes, purported cures for incurable diseases, ineffective nutritional supplements, and impersonations of celebrities asking for monetary contributions," while capping fraud prevention efforts at 0.15% revenue impact.
- A Meta spokesperson said Monday the company will fight the lawsuit, arguing it removed 159 million scam ads last year and the legal action distorts the "full range" of anti-scam work done.
- County Counsel Tony LoPresti stated elderly, low-income, and minority residents are disproportionately impacted by scams, cautioning that "we can't allow poison into that bloodstream" of Silicon Valley.
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21 Articles
21 Articles
Meta Sued by California County Over ‘Scam’ Advertisements
Meta Platforms Inc. was sued by Santa Clara County, California, over allegations that the company “knowingly facilitates and profits from billions of scam advertisements” on its social networks, including Facebook and Instagram.
·United States
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Meta, the company behind Facebook and Instagram, has been sued by Santa Clara County. Authorities in the California county accuse the company of “knowingly facilitating and profiting” from a large number of scam advertisements on its social networks.
Coverage Details
Total News Sources21
Leaning Left4Leaning Right3Center7Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 29%
C 50%
R 21%
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