"Santa Clara County sued Meta in Santa Clara County Superior Court, accusing the tech giant of turning scam advertisements on Facebook and Instagram into a multibillion-dollar revenue stream while Californians lost billions to online fraud. The lawsuit alleges Meta knowingly allowed fraudulent ads to remain on its platforms, charged higher prices for some flagged ads and limited enforcement when fraud prevention threatened the company's bottom line. The case seeks restitution, civil penalties and a court order requiring the company to change its practices."
"County officials described the case as the first such lawsuit by a local civil prosecutor in the nation targeting a major tech company over allegations that it knowingly enabled and profited from widespread deception and unfair business practices. The lawsuit puts a Silicon Valley county in direct conflict with one of the world's most powerful tech companies over who should bear responsibility for fraud that spreads through online advertising systems. The complaint alleges violations of California's false advertising and unfair competition laws."
"The county alleges that Meta's internal documentation shows that the company's platforms host about one-third of all internet scams - resulting in $2.5 billion in losses for California residents in 2024, county officials said. These scam advertisements boast products ranging from fake financial products and miracle cures for incurable diseases to recreations of celebrities requesting money and cryptocurrency scams. The lawsuit cites findings from a Reuters investigation that found internal Meta documents estimated 15 billion "higher risk" s"
Santa Clara County sued Meta in Santa Clara County Superior Court, alleging the company knowingly allowed scam advertisements on Facebook and Instagram to generate multibillion-dollar revenue while Californians lost billions to online fraud. The lawsuit claims Meta charged higher prices for some flagged ads and limited enforcement when fraud prevention threatened its business. County officials describe the case as a first-of-its-kind local civil prosecution targeting a major tech company over allegations of enabling deception and unfair business practices. The complaint alleges Meta’s platforms host about one-third of internet scams, tied to $2.5 billion in 2024 losses for California residents. The suit seeks restitution, civil penalties, and a court order requiring changes to Meta’s practices.
#online-advertising-fraud #false-advertising #unfair-competition #social-media-platforms #consumer-protection
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