Santa Clara County Sues Meta Over Scam Ads

Santa Clara County, California, filed a lawsuit against Meta Platforms on Monday in Santa Clara County Superior Court, accusing the company of knowingly profiting from billions of dollars in scam advertisements on Facebook and Instagram.

The complaint, brought on behalf of all California residents by County Counsel Tony LoPresti, alleges that Meta violated state false advertising and unfair competition laws by allowing fraudulent ads to proliferate. It claims the company generated nearly $7 billion annually from these high-risk advertisements, which targeted vulnerable users including seniors and families. Specific scams cited include fraudulent financial products, cryptocurrency schemes, fake cures for incurable diseases, ineffective supplements and celebrity impersonations soliciting money.

County officials contend that Meta used artificial intelligence and precise targeting to connect at-risk users with these ads while implementing internal measures to limit anti-scam enforcement if it threatened revenue goals. The suit further alleges that Meta permitted intermediaries to sell protected advertising accounts to bad actors, reducing scrutiny, and even adjusted scam ad volumes...