Rhode Island sues Meta over scam ads on Facebook and Instagram
The state says Meta knowingly profited from fraudulent advertising, a claim Meta disputes by pointing to its removal of more than 159 million scam ads.
Rhode Island has become the first US state to sue Meta over how it handles fraudulent advertising on Facebook and Instagram, with Attorney General Peter Neronha alleging the company knowingly exposed users to scams and profited from them. The state argues Meta has not moved harder against scam ads because they bring in revenue. Meta responded that it has removed more than 159 million scam ads and accused the state of hiring an out-of-state private firm instead of engaging with it. The case follows earlier suits from the Consumer Federation of America in April and Santa Clara County, California in May. A Reuters report from 2025 estimated scam ads could account for as much as 10 percent of Meta's revenue, a figure that gives the allegations weight for anyone building or running consumer-facing platforms.
Why it matters
Rhode Island is the first state to bring this kind of case, following earlier suits from the Consumer Federation of America and Santa Clara County. The central allegation is that Meta has not acted harder against scam ads because they generate revenue, and a 2025 Reuters estimate that such ads could make up as much as 10 percent of Meta's revenue gives that claim its weight. For users of Facebook and Instagram, the dispute centres on whether the company's enforcement against fraudulent ads is sufficient, and the outcome will show whether state action can change how those ads are policed.
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Sources
- Engadget