Rhode Island lawsuit against Meta over scam advertisements

Rhode Island Attorney General Peter F. Neronha has filed a lawsuit against Meta Platforms in Providence Superior Court, alleging the company knowingly allows fraudulent advertisements and financial scams to proliferate on Facebook, Instagram, and WhatsApp to generate substantial revenue.

The complaint alleges that Meta’s AI-driven advertising tools may help optimize these scams rather than block them. Internal documents cited in the suit suggest that Meta may display approximately 15 billion ‘highly risky’ advertisements daily, and as much as 10 percent of its 2024 revenue could have originated from deceptive formats. The lawsuit claims these practices cause significant financial harm to vulnerable consumers, including senior citizens, and alleges that Meta uses accountholder data to target these groups.

Rhode Island is seeking restitution, civil penalties, the disgorgement of ill-gotten gains, and the appointment of a monitor to ensure compliance. Meta spokesperson Andy Stone has called the lawsuit ‘unfounded,’ stating the company regularly partners with law enforcement to combat scammers and has removed over 159 million scam ads in the last year.