Consumer Group Sues Meta for Allegedly Allowing Scam Ads on Its Platforms

Wed, 22 Apr 2026 00:16:00 +0200

The Consumer Federation of America (CFA) has filed a lawsuit against Meta, accusing the company of violating Washington, DC's consumer protection laws by allowing fraudulent advertisements to appear on Facebook and Instagram. CFA claims that Meta profited from these scam ads while publicly claiming to take strong measures against fraud. The lawsuit highlights ads promoting fake government stimulus checks, free iPhones, and other deceptive offers that target consumers based on personal data. Meta denies the allegations, asserting that it actively combats scams and removed millions of scam ads and associated accounts in 2025. However, past reports, including internal Meta documents obtained by Reuters, indicate that scams may have generated a significant portion of the company's revenue and that advertising scams may have been easier on Meta platforms than competitors like Google. State attorneys general have also criticized Meta's handling of fraudulent ads, with some lawsuits ongoing.