GoKawiilRhode Island AG sues Meta alleging profit motive behind scam ad inaction
Rhode Island Attorney General Peter Neronha has filed a lawsuit against Meta, alleging the company fails to adequately police fraudulent advertisements on its platforms and profits from allowing them to run. Meta spokesperson Andy Stone disputed the claims, saying the company has removed over 159 million scam ads and accused the AG of refusing to engage before filing suit. Rhode Island's office says it is the first state to sue over this issue, though similar suits came earlier this year from the Consumer Federation of America and Santa Clara County.
GoKawiil's interpretation of the reporting above, not reported fact.
The lawsuit follows a 2025 Reuters report estimating scam ads could account for up to 10 percent of Meta's revenue, a figure that could fuel arguments that the company has financial incentives to under-enforce its own policies. If Rhode Island's suit succeeds, it could embolden other states to pursue similar legal action, increasing regulatory pressure on Meta's advertising business model.
- Rhode Island AG Peter Neronha filed suit alleging Meta profits from scam ads it fails to curb.
- Meta says it has removed 159 million scam ads and disputes the lawsuit's characterization.
- This follows earlier 2025 lawsuits from the Consumer Federation of America and Santa Clara County on the same issue.
Source: engadget.com — Anna Washenko, 2026-10-22
Published there as: “Rhode Island sues Meta over its approach to scam ads”
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