Rhode Island Attorney General Peter F. Neronha has filed the first state-level lawsuit against Meta, alleging the social media company fails to prevent fraudulent advertisements. The suit claims Meta has not taken stronger action against scams because they generate significant revenue.
Neronha stated that Meta knowingly exposed vulnerable users to fraud for profit. In response, Meta spokesperson Andy Stone cited the removal of over 159 million scam ads and refuted the allegations, refusing to engage with the AG's office. Legal filings indicate this is the first state action of its kind, though the Consumer Federation of America and Santa Clara County in California have previously sued Meta on similar grounds.
A 2025 Reuters report estimates scam ads could provide Meta with billions of dollars, possibly up to 10 percent of its revenue. Meta has previously shut down bad actors and sued creators of phony ads, while adding user protections for suspicious messages earlier this year.
Source: Engadget · Summarized by HeadlinesBriefing