Meta Sued by California County Over Alleged Scam Ads on Social Media

Santa Clara County in California filed a lawsuit against Meta on Monday, alleging that the company knowingly profited from ads promoting scams on Facebook and Instagram. The lawsuit alleges that the practices violate California’s false advertising laws, according to a Reuters report. 

The lawsuit was filed on behalf of all California residents and seeks restitution, civil damages, and an order permanently prohibiting Meta from engaging in such business practices. 

According to a 2025 Reuters report citing leaked internal documents, Meta has earned nearly $7 billion in annual revenue from such scam ads. The complaint alleges that Meta has used a combination of artificial intelligence and specialized targeting techniques to connect vulnerable users to fraudulent ads. 

The county alleges that Meta has not only tolerated these practices but also set up ways to block scam reduction and that it prioritized achieving its own financial targets over user safety. Meta has denied such claims to Reuters last year, with a spokesperson telling the publication that it “aggressively fights fraud and scams” to protect its platforms. 

A Meta spokesperson reiterated its fight against scams in an email to CNET.

“This claim relies on Reuters reporting that distorts our motives and ignores the full range of actions we take to combat scams every day,” the spokesperson said. “We aggressively fight scams on and off our platforms because they’re not good for us or the people and businesses that rely on our services. We removed over 159 million scam ads last year alone, launched new tools to protect people, and partnered with law enforcement around the globe to disrupt these criminals. We will fight this lawsuit.”

Santa Clara County’s Counsel has enlisted three law firms for the suit: Bernstein, Litowitz, Berger and Grossmann; Renne Public Law Group; and Bishop Partnoy, though all final decisions will be made by the county.