Meta is facing a new lawsuit over its advertising practices. The nonprofit group Consumer Federation of America (CFA) has filed a proposed class-action suit against Meta for “failing to protect users” from scam ads on Facebook and Instagram.
The lawsuit, which was first reported by Wired, alleges that Meta has run afoul of consumer protection laws in Washington D.C. for misleading Facebook and Instagram users about scams on its apps and that the company has “chased profits rather than protecting its users.” The filing includes numerous examples of alleged scam ads that CFA says it found in Meta’s ad library. These include ads promoting a “free government iPhone,” as well as those claiming to offer $1,400 checks to people born in certain years. Many of the ads use AI videos, according to CFA.
Some of examples of alleged scam ads CFA includes in its lawsuit. (CFA)
Meta’s advertising practices have been in the spotlight since last year when Reuters reported on internal documents that indicated the company was making billions of dollars from ads promoting scams and banned goods. The report also highlighted how Meta’s own processes have at times made it harder for its own employees to fight malicious advertisers.
“Meta claims it is doing all it can to crack down on scam advertising on its platforms,” CFA’s lawsuit states. “But in reality, Meta has knowingly taken steps and adopted policies that pad its bottom line at the expense of its users’ safety and well-being. In fact, rather than prohibiting advertisers who the company itself has determined pose a higher risk to its users (as other tech companies like Google have), Meta just charges these advertisers more. The perverse result is that the riskier the advertiser, the more money Meta makes.”
CFA’s allegations “misrepresent the reality of our work and we will fight them,” a Meta spokesperson said in a statement. “We aggressively combat scams across our platforms to protect people and businesses — last year alone, we removed over 159 million scam ads, 92% of which we took down before anyone reported them, and took down 10.9 million accounts on Facebook and Instagram associated with criminal scam centers. We fight scams because they are bad for business — people don’t want them, advertisers don’t want them, and we don’t want them either.”
