Santa Clara County Sues Meta for Allegedly Profiting from Scam Ads
Santa Clara County, California, has filed a lawsuit against Meta Platforms, alleging the company knowingly tolerated fraudulent advertisements on Facebook and Instagram to boost revenue. Citing leaked internal documents, the complaint claims Meta earned up to $7 billion annually from high-risk scam ads while blocking effective reduction efforts that might impact profits. The suit accuses Meta of violating state false advertising laws and using generative AI to assist deceptive marketers. Seeking restitution and injunctions, this case highlights increasing regulatory scrutiny of tech giants’ responsibility in policing digital fraud and protecting vulnerable users.
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Santa Clara County Sues Meta Over Alleged Profits from Scam Advertising
Santa Clara County in California has filed a lawsuit against Meta Platforms, alleging the tech giant knowingly profits from fraudulent advertising on its platforms, including Facebook and Instagram. The complaint claims Meta generates approximately $7 billion annually from these scam ads, which target vulnerable consumers with schemes involving fake financial products, cryptocurrency fraud, and health scams. Internal documents cited in the lawsuit suggest Meta only bans marketers when 95 percent certain of fraud, instead charging premium fees to those below this threshold to continue running ads. This legal action adds to Meta's growing list of challenges, following a recent landmark ruling that held the company liable for harming young users through addictive design features. Meta has denied the allegations, with a spokesperson stating the lawsuit distorts their motives and highlighting the removal of 159 million scam ads last year. The county argues that Meta's practices have caused significant financial harm to California residents, particularly seniors, who reported over $2.5 billion in losses to scammers in 2024.
Al Jazeera – Breaking News, World News and Video from Al JazeeraSanta Clara County Sues Meta Over Alleged Profits from Scam Ads Targeting Seniors
Santa Clara County, California, has filed a lawsuit against Meta Platforms Inc., alleging that the social media giant knowingly facilitates and profits from billions of scam advertisements on its platforms, including Facebook and Instagram. The complaint asserts that these deceptive ads specifically target vulnerable demographics, such as seniors and families. Tony LoPresti, the Santa Clara County counsel leading the legal action, claims that Meta generates approximately $7 billion annually from these fraudulent advertisements. The scams reportedly involve fraudulent financial products, cryptocurrency schemes, fake cures for incurable diseases, ineffective nutritional supplements, and celebrity impersonations seeking monetary contributions. LoPresti is seeking injunctive relief, civil penalties, and restitution for victims who lost money due to these actions. While Meta’s headquarters are located in neighboring San Mateo County, many employees, including CEO Mark Zuckerberg, reside in Santa Clara County. Meta, which reported over $200 billion in sales in 2025, derives the majority of its revenue from advertising. A spokesperson for Meta did not immediately provide a comment regarding the lawsuit. This legal action highlights growing regulatory scrutiny over tech companies' responsibility in monitoring ad content.
Fortune | FORTUNESanta Clara County Sues Meta for $7 Billion Over Alleged Scam Ads
Santa Clara County has filed a significant lawsuit against Meta Platforms Inc., seeking over $7 billion in damages. The legal action alleges that the tech giant knowingly tolerated fraudulent advertising on its platforms, including Facebook and Instagram, which resulted in substantial financial losses for residents. The complaint further accuses Meta of placing internal limits on anti-scam enforcement efforts to prioritize and protect its advertising revenue streams. According to the county, Meta’s algorithms actively promoted these deceptive ads, ranging from fake investment schemes to counterfeit product listings, despite having the technical capability to detect and remove them. This case highlights growing regulatory scrutiny regarding the responsibility of social media companies in policing content and protecting users from digital fraud. The lawsuit aims to hold Meta accountable for what officials describe as a deliberate choice to profit from harmful content rather than ensuring user safety. If successful, this litigation could set a major precedent for how tech platforms are held liable for third-party fraudulent activities occurring on their sites, potentially forcing significant changes in ad moderation policies across the industry.
QuartzSanta Clara County Sues Meta Over Alleged Profits from Scam Ads
Santa Clara County has filed a lawsuit against Meta Platforms in California state court, alleging the tech giant violates state false-advertising and unfair-business-practices laws. The complaint, filed on behalf of all California residents, claims Meta earns up to $7 billion annually from high-risk scam advertisements on Facebook and Instagram. The county asserts that Meta knowingly tolerated this misconduct, establishing internal guardrails that prioritized revenue over scam reduction. Citing internal documents previously reported by Reuters, the suit alleges Meta projected that over 10% of its 2024 revenue would stem from scams and banned goods. Furthermore, the complaint accuses Meta of allowing middlemen to sell protected ad accounts and targeting users who previously interacted with fraudulent listings. The county seeks restitution for affected residents, civil damages, and an injunction to stop these practices. This legal action adds to growing global scrutiny, with parallel inquiries underway in Japan, the UK, and Australia, as well as a similar class-action lawsuit in Washington, DC. Meta has not immediately commented but previously stated it actively removes scam content and enforces policies against such fraud.
The Next WebSanta Clara County Sues Meta Over Alleged Profits from Scam Ads
Santa Clara County in California has filed a lawsuit against Meta Platforms, accusing the social media giant of profiting from fraudulent advertisements on Facebook and Instagram. The complaint, filed in Santa Clara County Superior Court on behalf of all California residents, alleges that Meta violated state false advertising and unfair business practices laws by tolerating scam ads to boost revenue. Citing leaked internal documents, the county claims Meta earned up to $7 billion annually from high-risk scam advertisements. The lawsuit further alleges that Meta established financial guardrails that blocked scam reduction efforts if they were too costly and used generative AI to assist unethical marketers. County Counsel Tony LoPresti stated that Meta deceived the public by claiming rigorous anti-fraud measures while allegedly adjusting ad volumes to meet earnings targets. The county seeks restitution, civil damages, and an injunction against these practices. Meta has previously denied deliberately accepting scam ads, stating it aggressively fights fraud. The county is collaborating with three outside law firms but retains full control over the case, with legal fees contingent on a successful outcome.
Insurance JournalSanta Clara County Sues Meta Over Alleged Profits from Scam Ads
Santa Clara County in California has filed a lawsuit against Meta Platforms, accusing the social media giant of violating state false advertising and unfair business practices laws. The complaint, filed in Santa Clara County Superior Court on behalf of all California residents, alleges that Meta knowingly tolerated fraudulent advertisements on Facebook and Instagram to boost revenue. Citing leaked internal documents, the county claims Meta earned up to $7 billion annually from high-risk scam ads. The suit argues that Meta established financial guardrails that blocked effective scam reduction efforts if they impacted profits too significantly. Furthermore, the county alleges that Meta’s generative AI tools assisted unethical marketers in creating these deceptive ads and that the company allowed middlemen to sell protected accounts for placing such content. The lawsuit seeks restitution, civil damages, and an injunction to stop these alleged practices. While Meta has previously stated it aggressively fights fraud, the county contends these public assurances were deceptive and designed to hide the extent of the problem. County Counsel Tony LoPresti emphasized the duty to hold tech companies accountable, noting that outside law firms are assisting but will only be paid if the county wins.
Latest NewsSanta Clara County Sues Meta Over Alleged Profits from Scam Ads
Santa Clara County in California has filed a lawsuit against Meta Platforms, accusing the social media giant of violating state false advertising and unfair business practices laws. The complaint, filed in Santa Clara County Superior Court on behalf of all California residents, alleges that Meta knowingly tolerated fraudulent advertisements on Facebook and Instagram to boost revenue. Citing leaked internal documents, the county claims Meta earned up to $7 billion annually from high-risk scam ads. The suit argues that Meta established financial guardrails that blocked effective scam reduction efforts if they impacted profits too significantly. Furthermore, the county alleges that Meta’s generative AI systems assisted unethical marketers in creating these deceptive ads and that the company allowed middlemen to sell protected accounts for placing such content. While Meta has previously stated it aggressively fights fraud, the lawsuit contends these public assurances were deceptive, hiding the extent to which bogus ads contributed to its earnings. The county seeks restitution, civil damages, and an injunction to prohibit Meta from engaging in these alleged unfair business practices.
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