Rhode Island sues Meta over scam adverts on Facebook, Instagram and WhatsApp
Rhode Island sues Meta over scam advertising, filing the first US state lawsuit of its kind against the tech giant. The case, filed in Providence Superior Court on Thursday, accuses Meta Platforms of tolerating widespread scam adverts across Facebook, Instagram and WhatsApp while unlawfully profiting from billions of dollars in fraudulent ads.
Attorney General Peter Neronha filed the case in Providence Superior Court on Thursday. It is the first scam-related lawsuit against Meta brought by a US state. It follows a similar action filed in May by Santa Clara County in California.
Rhode Island sues Meta: what the lawsuit alleges
The complaint says Meta knowingly allowed scam adverts to flood its platforms and made enormous profits from them. It seeks civil penalties for each alleged violation of Rhode Island law, restitution for affected consumers, and the recovery of profits the company allegedly obtained unlawfully.
“As alleged, Meta knowingly exposed vulnerable users to fraud and scams, and made enormous profits in doing so,” Neronha said in a statement. “When companies, big or small, take advantage of Rhode Island consumers, this office will do everything within our authority to hold them to account.”
The suit also asks the court to order Meta to address scam adverts rather than profit from them.
15 billion risky adverts a day
The case leans on internal Meta documents reported by Reuters last year. They estimated Meta displayed around 15 billion “higher risk” scam adverts daily, with fraudulent e-commerce, dubious health products and other banned marketing generating roughly 10 per cent of Meta’s 2024 revenue. Rhode Island alleges Meta’s own AI advert-creation tools actively helped scammers design more effective frauds, and that the company sometimes charged suspected fraudsters extra rather than blocking them.
Elderly users in the crosshairs
The lawsuit says scam adverts often targeted elderly people. It cites an investigation by the nonprofit Center for Countering Digital Hate, which identified nearly 94,000 scam adverts on Meta’s platforms.
One set of adverts promised to reverse Alzheimer’s disease in 45 days, with more than 2,000 versions active in Meta’s advert library. Some advertisers spent more on Meta ads over several years than brands such as Walmart or Pfizer.
The state also flagged adverts for AI apps that generate deepfake pornography, and scam adverts impersonating public figures and banks. In one case, scammers in China used the name and image of a senior Bank of America executive to lure users into fraudulent stock trades on WhatsApp.
Meta rejects the claims
Meta called the lawsuit “unfounded” and vowed to fight it. The company says it removed over 159 million scam adverts in the past year and works with law enforcement. But an internal Meta review in April 2025 concluded: “It is easier to advertise scams on Meta platforms than Google.” The suit says a banned advertiser can return “in the time it takes to provide a new email address or phone number.”
Why it matters for Pakistan
Pakistan is one of the largest markets for Facebook and WhatsApp, and Pakistani users face the same flood of fraudulent adverts, from fake investment schemes to impersonation scams. The National Cyber Crime Investigation Agency has repeatedly warned citizens about social media fraud, and recently arrested a man in Faisalabad for allegedly running a Saudi visa scam through TikTok. A ruling against Meta could set a global precedent for platform liability.
Frequently asked questions
Why is Rhode Island suing Meta?
The state alleges Meta profited from billions of scam adverts on Facebook, Instagram and WhatsApp while misleading users about its anti-fraud efforts. It seeks penalties, consumer restitution and a court order forcing Meta to fix the problem.
Is this the first such lawsuit against Meta?
It is the first brought by a US state. Santa Clara County filed a similar case in May, and a German court has separately ruled Meta liable for fake adverts.
How many scam adverts does Meta allegedly show?
Internal documents cited in the suit estimate around 15 billion “higher risk” scam adverts per day, generating roughly 10 per cent of Meta’s 2024 revenue.
What does Meta say?
Meta calls the lawsuit unfounded. It says it removed over 159 million scam adverts in the past year and works with law enforcement to disrupt scam networks.
Sources: Reuters, The Express Tribune
