Rhode Island has brought legal action against Meta, contending that the technology giant both profited from and actively participated in the creation of deceptive advertisements circulating on Facebook, Instagram, and WhatsApp. Attorney General Peter Neronha submitted the case to Providence County Superior Court on October 22, asserting that Meta violated state consumer protection statutes even as it publicly represented itself as a guardian of user safety.
This marks the first instance of a U.S. state pursuing such allegations against Meta in relation to scams, though Santa Clara County in California filed comparable litigation in May.
As alleged, Meta knowingly exposed vulnerable users to fraud and scams, and made enormous profits in doing so
Attorney General Peter Neronha
The lawsuit draws heavily from investigative work by Reuters that examined confidential Meta documents. These materials revealed that Meta's systems delivered approximately 15 billion high-risk scam advertisements daily to its users. Additionally, the company projected that roughly 10% of its 2024 revenue—approximately $16 billion—would derive from advertisements promoting scams and prohibited merchandise.
Allegations of Complicity
Rhode Island's complaint asserts that Meta's artificial intelligence-powered advertising infrastructure occasionally facilitated scammers' efforts. The state further contends that rather than removing suspected fraudsters from its platform, Meta imposed elevated advertising fees on certain bad actors. The company additionally resisted implementing measures that would mandate advertiser identity verification.
A banned advertiser can reappear in the time it takes to provide a new email address or phone number
from the complaint
The lawsuit provides specific instances of deceptive campaigns. One advertisement falsely claimed to reverse Alzheimer's disease within 45 days and appeared in more than 2,000 variations within Meta's Ad Library. Another set of ads impersonated a Bank of America executive to manipulate users into participating in fraudulent stock-trading schemes on WhatsApp.
Requested Remedies
Rhode Island is seeking civil penalties for each violation, restitution for affected consumers, and recovery of profits Meta earned through the fraudulent advertisements. The state additionally requests that the court compel Meta to address scam advertisements it distributes or creates and that an independent monitor be assigned to oversee compliance.
Meta's Response
Meta has rejected the Reuters investigation, characterizing it as a distorted and incomplete representation of the company's fraud prevention strategy. Spokesperson Andy Stone previously stated:
We aggressively fight fraud and scams because people on our platforms don't want this content
Meta spokesperson Andy Stone
Since that statement, Meta has highlighted improvements in its anti-scam initiatives. However, Rhode Island maintains that fraudulent advertisements persist and remain readily accessible through Meta's own advertising library. This lawsuit joins mounting legal challenges confronting the company regarding fraud, including an April suit filed by the Consumer Federation of America in Washington, DC, also centered on scam advertisements.
Source: The Next Web
