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Consumer Watchdog Group Files Suit Alleging Meta Profited on Ads for Scams
The nonprofit says Meta let scam ads spread on Facebook and Instagram while profiting from them and misleading users about fraud controls.
- On Tuesday, the Consumer Federation of America filed a lawsuit against Meta in Washington, D.C. Superior Court, alleging the company violated consumer protection laws by failing to block scam ads on Facebook and Instagram.
- The lawsuit alleges Meta has "chased profits rather than protecting its users" by charging higher rates for riskier advertisements while creating a "false impression of safety."
- Ben Winters, director of AI and data privacy at CFA, identified active scam ads in Meta's library promoting a "free government iPhone" and $1,400 checks targeting users by birth year.
- Meta denied the allegations, stating they "misrepresent the reality of our work," while telling CBS News it removed over 159 million scam ads last year, 92% before being reported.
- According to the Global Anti-Scam Alliance, global losses to scams exceeded $1 trillion in 2024, with 23% of adults worldwide reporting financial losses to scammers in 2025.
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13 Articles
13 Articles
A lawsuit filed by the Consumers Federation of America alleges that the owner of Facebook, Instagram, and WhatsApp profited from the dissemination of advertisements promoting scams and prohibited products.
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Coverage Details
Total News Sources13
Leaning Left2Leaning Right1Center5Last UpdatedBias Distribution63% Center
Bias Distribution
- 63% of the sources are Center
63% Center
L 25%
C 63%
12%
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