Rhode Island sues Meta over alleged tolerance for scam advertising
The suit, filed by Rhode Island Attorney General Peter Neronha in Providence Superior Court, accuses Meta of unlawfully profiting from and participating in the creation of billions of dollars in scam advertising - even as it assured its billions of users that it was working diligently to protect them.
Rhode Island Attorney General Peter Neronha filed a lawsuit against Meta Platforms in a state court on Thursday, alleging that the company has shown a reckless tolerance for scam advertising on its Facebook, Instagram and WhatsApp platforms. Neronha's lawsuit claims Meta has unlawfully profited from billions of dollars in scam advertising while assuring its users that it is diligently protecting them.
If proven, the lawsuit could result in monetary penalties, restitution for consumers, the recoupment of ill-gotten gains, and a judicial order requiring Meta to stop profiting from scam ads it creates and delivers on its platforms. Neronha stated that Meta must be held accountable for knowingly exposing vulnerable users to fraud and scams, and making enormous profits in the process.
Meta has filed a counter-lawsuit, calling the allegations "unfounded" and asserting that the company is working with law enforcement to disrupt scam networks. The company's spokesperson, Andy Stone, noted that Meta has removed over 159 million scam ads and launched new anti-fraud tools in the past year. He also claimed that Meta has earned far more from high-risk scam ads than it expected to pay in fines.
The lawsuit highlights the prevalence of high-risk scam ads on Meta's platforms, which promise illicit products or services, target the elderly, impersonate public figures and trusted institutions, and are often created using Meta's AI ad creation tools. The Rhode Island Attorney General's office alleges that Meta's AI tools actively assist scammers in creating and optimizing fraudulent ads, despite warning users about the risks.
Meta maintains that it is committed to combating fraud and scams, but the lawsuit suggests that the company's efforts to address the issue have been insufficient. The case comes after a similar lawsuit was filed by California's Santa Clara County, making this the first such case brought against Meta by a US state.
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