Senators Demand Meta Investigation Over Scam Ad Revenue Allegations

Senators Josh Hawley and Richard Blumenthal have urged the FTC and SEC to investigate Meta after reports stated the company made $16 billion from scam ads. They accuse Meta of negligence in restricting false advertisements on Facebook and Instagram, claiming it led to over $50 billion in consumer losses.

In a recent development, U.S. Senators Josh Hawley and Richard Blumenthal have called on the Federal Trade Commission and the Securities and Exchange Commission to launch an investigation into Meta Platforms. This follows a Reuters report highlighting the company's substantial revenue from advertisements on Facebook and Instagram that promote scams and other prohibited goods.

The senators' letter to the federal agencies emphasized the need for immediate probes and potential enforcement actions, urging Meta to return profits and halt such advertisements. According to the report, internal documents from Meta reveal that the company earned approximately $16 billion from illicit ads in 2024 alone, with $3.5 billion attributed to scam ads every six months.

Despite Meta's claims of reducing scam reports by 58% in the last eighteen months, Hawley and Blumenthal cited evidence suggesting Meta played a significant role in consumer scams, contributing to over $50 billion in losses. They particularly noted fake ads impersonating the U.S. government and political figures, raising concerns about Meta's continued negligence.

(With inputs from agencies.)