Rhode Island Sues Meta Over Alleged Tolerance of Scam Ads, in a First-of-Its-Kind State Case
Providence: Rhode Island sued Meta Platforms in state court on October 22 over the company's alleged tolerance for widespread scam advertising on its Facebook, Instagram and WhatsApp platforms, accusing it of unlawfully profiting from scam ads while assuring users it was working to protect them. It is the first such scams-related case brought against Meta by a U.S. state, following a similar lawsuit filed in May by California's Santa Clara County.
The suit, filed by Rhode Island Attorney General Peter Neronha in Providence Superior Court, seeks civil penalties for each alleged violation of state law, restitution to consumers, disgorgement of ill-gotten gains, and a court order requiring Meta to address, rather than profit from, the scam ads it delivers. "As alleged, Meta knowingly exposed vulnerable users to fraud and scams, and made enormous profits in doing so," Neronha said in a press release.
The suit cites Reuters reporting last year on internal Meta documents: according to those documents, Meta displays around 15 billion "higher risk" scam ads to users every day, and earned roughly 10% of its 2024 revenue from fraudulent e-commerce, dubious health products and other banned marketing. One set of ads promised to reverse Alzheimer's disease in 45 days, with more than 2,000 versions active in Meta's ad library, the complaint stated. Rhode Island also alleged that Meta's SI ad tools actively assisted scammers, and that instead of consistently blocking suspected fraud advertisers, Meta sometimes charged them extra as a penalty. The suit says fraudulent ads often targeted elderly people.
Meta did not immediately respond to a request for comment on the case and has disputed the Reuters reporting. Spokesman Andy Stone previously said the company "aggressively fight[s] fraud and scams because people on our platforms don't want this content, legitimate advertisers don't want it and we don't want it either," calling the reporting "a selective view that distorts Meta's approach." Meta has claimed progress on anti-scam initiatives since the reporting, but Rhode Island alleged scams remain rampant and readily findable in its ad library. (GSM, reporting from Reuters)
Published by GSM · USA (original Chinese edition)
Photo: 图：罗德岛州议会大厦（资料图），诉讼在该州Providence高等法院提起。Farragutful摄，CC BY-SA 4.0，经维基共享资源。Photo: The Rhode Island State House (file photo); the suit was filed in Providence Superior Court. By Farragutful, CC BY-SA 4.0, via Wikimedia Commons.
