Overview
- Consumer Federation of America filed a proposed class action Tuesday in Washington, D.C., accusing Meta of misleading users and profiting from scam ads on its platforms.
- The suit seeks damages, recovery of alleged illegal profits, injunctive relief, and a jury trial under the D.C. Consumer Protection Procedures Act.
- The complaint leans on internal documents reported by Reuters that estimated 15 billion higher‑risk ads shown per day in 2024 and about $7 billion in annualized revenue tied to scams, with a separate projection of roughly 10% of yearly revenue.
- The filing also alleges Meta kept ad‑reselling “agency accounts” and business partnerships in China that helped fraudulent promotions reach users.
- Meta disputes the claims and points to recent steps, saying it removed over 159 million scam ads last year, shut down 10.9 million related accounts, expanded advertiser verification, and blocked finance ads from steering people into private messages.