Santa Clara County Sues Meta Over Alleged Scam Profits

Santa Clara County has filed a lawsuit against Meta Platforms, alleging that the company profits from fraudulent ads on Facebook and Instagram. The county claims Meta earned up to $7 billion annually from scam ads and has not taken adequate steps to combat this. Meta plans to contest the allegations.

Santa Clara County is taking legal action against Meta Platforms, accusing the tech giant of profiting massively from scam advertisements on Facebook and Instagram. The lawsuit claims that Meta has grossed up to $7 billion annually from these fraudulent ads, violating California's false advertising and unfair business practices laws.

According to the suit, Meta has largely ignored the issue, going so far as to implement 'guardrails' that prevent reductions in scam ads if they would negatively impact the company's revenue. Among the allegations, Santa Clara County says Meta's artificial intelligence systems have actually helped unethical marketers craft deceptive ads.

Meta has refuted these claims, suggesting the lawsuit misrepresents their efforts to combat scams. Nevertheless, Santa Clara County remains committed, working with three external law firms to prosecute the case, but will maintain full control of the proceedings. The outcome could have significant implications for the social media titan.