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The Consumer Federation of America has filed a class action lawsuit against Meta Platforms in Washington, D.C., accusing the company of allowing scam ads to reach users while earning major revenue from high risk advertisers.
Good to Know
Meta Platforms is facing a class action lawsuit from the Consumer Federation of America over scam ads on Facebook and other Meta platforms.
The CFA, an association of non-profit consumer groups, filed the case in Superior Court in Washington, D.C. It wants damages and the recovery of alleged illegal profits tied to scam advertising.
The complaint says Meta presents itself as active against scam ads, but instead created policies that benefit revenue while leaving users exposed.
“Meta claims it is doing all it can to crack down on scam advertising on its platforms. But in reality, Meta has knowingly taken steps and adopted policies that pad its bottom line at the expense of its users’ safety and well-being. In fact, rather than prohibiting advertisers who the company itself has determined pose a higher risk to its users (as other tech companies like Google have), Meta just charges these advertisers more.”
The lawsuit says Meta earns about $7 billion a year from high risk ads alone. It also cites internal documents that allegedly projected around 10% of total 2024 revenue, or about $16 billion, from ads linked to scams and banned goods, including ads shown on Facebook.
Meta rejected the claims in a statement to media outlets.
“These allegations misrepresent the reality of our work and we will fight them.”
The CFA argues that Meta violated the D.C. Consumer Protection Procedures Act. The law bars unfair or deceptive trade practices and also covers unlawful advertising tied to consumer goods and services.