Rhode Island sues Meta over its approach to scam ads
It is the first state to sue the social media company on these allegations.
Rhode Island Attorney General Peter F. Neronha has filed a lawsuit against Meta over the company's handling of scam advertisements. The suit alleges that the social media business does not do enough to prevent fraudulent ads on its platforms and claims that Meta has not taken stronger action because those scams generate revenue.
Attorney General Statements
For a company that engages so many residents, maintaining high standards for consumer safety should be of the utmost importance, Neronha stated. As alleged, Meta knowingly exposed vulnerable users to fraud and scams while making enormous profits in the process.
Meta Response
Meta defended its record, stating that the company has removed more than 159 million scam advertisements from its platforms. A company representative criticized the state's approach, arguing that the lawsuit ignores the full range of actions taken daily to combat fraudulent activity.
Broader Legal Context
Rhode Island is the first state to take legal action regarding the alleged inaction on scams, following previous lawsuits filed by the Consumer Federation of America and Santa Clara County in California.
Previous reports indicated that scam advertisements could account for a significant portion of revenue across social networks. Meanwhile, Meta has attempted to shut down bad actors, sue creators of phony ads, and introduce user protections for suspicious messages.
