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Rhode Island Lawsuit Claims Meta Knowingly Profits From Financial Scam Ads

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Rhode Island Lawsuit Claims Meta Knowingly Profits From Financial Scam Ads

Rhode Island Attorney General Peter F. Neronha sued Meta Thursday (Oct. 22), alleging that the company fails to block advertisements for fraudulent products and financial scams on its platforms, Neronha said in a press release.

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The lawsuit alleged that Meta knows “that scam ads cause significant financial harm to vulnerable consumers”; allows the ads “because they generate substantial revenue”; and helps create, refine and distribute the ads, including by using accountholder data to help advertisers target vulnerable consumers such as senior citizens, according to the release.

“For a company that engages so many Rhode Islanders and Americans, maintaining high standards for consumer safety should be of the utmost importance,” Neronha said in the release. “As alleged, Meta knowingly exposed vulnerable users to fraud and scams, and made enormous profits in doing so.”

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In a statement provided to Reuters, Meta spokesperson Andy Stone said the lawsuit is “unfounded,” Meta will fight it and the company regularly partners with law enforcement to combat scammers.

“The attorney general refused to engage with us on ways we protect Rhode Islanders from scams and has instead hired an out-of-state private law firm to concoct a lawsuit that ignores the full range of actions we take to combat scams every day,” Stone said, per the report.


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