Rhode Island sues Meta over its approach to scam ads
Rhode Island Attorney General Peter F. Neronha has sued Meta, alleging that it fails to do enough to stop scam advertisements and has not taken stronger action because the ads bring in revenue. The state says it is the first to sue Meta over these allegations, bringing fresh legal scrutiny to how the company balances advertising income with consumer protection.
Meta spokesperson Andy Stone said the company had removed more than 159 million scam ads and accused the attorney general of filing without discussing its safeguards. The lawsuit follows earlier cases brought by the Consumer Federation of America in April and Santa Clara County in May; a 2025 Reuters report estimated scam ads might account for as much as 10 per cent of Meta’s revenue.
In short
- Rhode Island has sued Meta over alleged failures to curb scam adverts.
- Meta says it removed more than 159 million scam ads.
- Earlier lawsuits and reporting have raised questions about scam-ad revenue.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Rhode Island’s case is that a platform earning advertising revenue has a responsibility to take effective steps against fraud, especially when scam ads can expose users to financial harm. The state may argue that large removal totals do not answer whether Meta’s safeguards are adequate, and that legal scrutiny is warranted if commercial incentives weaken enforcement.
The case against
Meta can argue that it actively works to limit scam advertising, pointing to its removal of more than 159 million such ads, and that the lawsuit does not fairly assess its safeguards if the state did not first discuss them with the company. It may also contend that the existence of scams does not by itself show that Meta knowingly tolerated them for revenue, so the allegations should be tested with evidence through the legal process.
Explained simply
Meta owns Facebook and Instagram, where businesses and individuals can pay to show adverts to users. Some adverts are fraudulent, for example by promoting fake investments or products, and can lead people to lose money or share personal information.
Rhode Island’s attorney general, Peter F. Neronha, represents the state in legal cases. The state’s lawsuit raises questions about what Meta knew about scam adverts, what steps it took to remove them and how its advertising income relates to those efforts. Meta says it has removed large numbers of scam adverts and has safeguards in place.
The case sits alongside other legal challenges over scam advertising on Meta’s platforms. Its outcome could affect how courts assess the company’s responsibilities to users and what measures it may be expected to take.