Meta faces fresh lawsuit over fake ads on Facebook and Instagram promising free phones, government payouts
Follow UsCFA alleges scam ads promising free phones and payouts are still active on Facebook and Instagram
Meta denies claims, says it removed over 159 million scam ads and millions of accounts
Lawsuit seeks damages and stricter oversight of ad review systems
A US based consumer advocacy group has reportedly filed a lawsuit against Meta claiming that the company has failed to control scam related ads on its platforms- Instagram, Facebook and WhatsApp in violation of Washington DC’s consumer protection laws. The Consumer Federation of America (CFA), in its lawsuit, claimed that Meta allowed misleading ads to circulate widely while also profiting from them despite publicly stating it takes action against the frauds and scams.
SurveyThe complaint focuses on ads that allegedly promote deceptive schemes, including offers tied to government payouts and free devices. As per nonprofit org, such ads are widely recognised as common scam formats and continue to appear across Meta’s platforms. The group argued that these ads mislead the users and expose them to financial risks.
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On the other hand, Meta has clearly denied the allegations stating that they do not accurately represent its efforts to tackle fraud activity. The company stated that it actively works to remove scam related content and has invested in systems designed to identify and block such ads before they reach the users. It also mentioned that the company remove large volumes of scam ads and accounts linked to fraud operations.
“We aggressively combat scams across our platforms to protect people and businesses — last year alone, we removed over 159 million scam ads, 92% of which we took down before anyone reported them, and took down 10.9 million accounts on Facebook and Instagram associated with criminal scam centers,” the company said as quoted by The Wired.
The report also mentioned that CFA claimed that questionable ads can still be found through simple keyword searches, prompting calls for stricter oversight and better pre-screening mechanisms. Now, the organisation is seeking damages and changes in how Meta reviews and manages ads.
