New lawsuit alleges Meta misled users about efforts to prevent scams on platforms like Facebook and Instagram. Consumer Federation of America (CFA) filed complaint in Washington D.C. superior court, alleging Meta failed to block scam ads while charging advertisers more for content display.
“CFA states that Meta’s policies allow scam advertisements to proliferate while profiting from them at users’ expense,” the suit reads. The group also accused Meta of downplaying fraud scale on its apps, creating a false impression of safety for users.
“Meta has consistently prioritized profit over user safety as Americans lose more money to online scams,” said Ben Winters, director of AI and data privacy at CFA.
The lawsuit claims violations under Washington D.C. consumer protection law, seeking damages and recovery of illegal profits from ads. Meta spokesperson stated allegations misrepresent reality and that the company aggressively combats scams on platforms, removing over 159 million scam ads last year, with 92% taken down before reports.
Meta also continues to invest in new technologies to combat securities investment and other scams, the company said.