Santa Clara County, California, has initiated a lawsuit against Meta Platforms, Inc., alleging that the company profits from a widespread network of scam advertisements on Facebook and Instagram. County Counsel Tony LoPresti stated that these ads have targeted vulnerable individuals, particularly senior citizens, and accused Meta of enabling these scams through its policies. According to the lawsuit, Meta generates as much as $7 billion annually from such advertisements. The lawsuit references a report from Reuters, which highlighted internal documents revealing the extensive financial involvement of scam advertisers on Meta's platforms.

In a recent report, the Center for Countering Digital Hate (CCDH) indicated that Meta has earned over $14 million from Medicare-related scam ads, many of which involved repeat offenders. Meta has responded to the allegations, asserting that it actively combats scams and has removed over 159 million scam ads in the past year. The company claims that scammers employ increasingly sophisticated tactics to evade detection, and it continues to collaborate with law enforcement to address the issue. This lawsuit marks a significant move as it is the first initiated by a local civil prosecutor against Meta regarding scam advertisements.