Rhode Island sues Meta over handling of scam ads

Rhode Island Attorney General Peter F. Neronha has filed a lawsuit against Meta, the company behind platforms such as Facebook and Instagram, over how it deals with scam advertisements. The suit alleges that Meta fails to do enough to prevent fraudulent ads on its platforms. Rhode Island is the first US state to take such action against the company.

What the state alleges

According to the complaint, Meta has not acted more forcefully against scam ads because they bring the company revenue. Neronha said a company that engages so many Rhode Islanders and Americans should treat consumer safety as a top priority. In his words, Meta knowingly exposed vulnerable users to fraud and made enormous profits from it. He added that his office will use all its authority to hold companies accountable when they take advantage of consumers.

Meta's response

In a statement to Reuters, which first reported on the lawsuit, Meta spokesperson Andy Stone said the company has removed more than 159 million scam ads from its platforms. He claimed the attorney general refused to discuss the ways Meta protects Rhode Islanders and instead hired an out-of-state private law firm to produce a suit that ignores the full range of the company's daily anti-scam efforts.

Earlier cases

Although Rhode Island is the first state to act, Meta has been sued on this subject before. The Consumer Federation of America filed a lawsuit in April, and Santa Clara County in California did so in May.

A 2025 Reuters report found that scam ads across Meta's networks could be bringing in billions of dollars, possibly as much as 10 percent of its revenue. The company has shut down some of the bad actors behind such ads and sued the creators of others. Earlier this year it also added protections for users against suspicious messages.