Rhode Island sues Meta over its approach to scam ads

It’s the first state to sue the social media company on these allegations.

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Rhode Island Attorney General Peter F. Neronha has filed a lawsuit against Meta over the company's handling of scam advertisements. The suit alleges that the social media business does not do enough to prevent fraudulent ads on its platforms. It further claims that Meta has not taken stronger action against those scams because they generate revenue for the company.

"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. "As alleged, Meta knowingly exposed vulnerable users to fraud and scams, and made enormous profits in doing so. When companies, big or small, take advantage of Rhode Island consumers, this Office will do everything within our authority to hold them to account."

In a statement to Reuters, which first reported on the state lawsuit, Meta spokesperson Andy Stone said the company has removed more than 159 million scam ads from its platforms. "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.

The release from the AG's office says Rhode Island is the first state to take action over the alleged inaction, although it isn't the first time the social media company has been sued on this subject. The Consumer Federation of America filed a lawsuit in April and Santa Clara County in California did the same in May.

A 2025 report from Reuters found that scam advertisements across its networks could be providing billions of dollars for Meta, possibly as much as 10 percent of its revenue. The company has engaged in actions to shut down the bad actors behind some of those phony ads and sue the creators of other ones. It also added some user protections for suspicious messages earlier this year.