Rhode Island Attorney General Peter F.
Neronha filed a lawsuit against Meta concerning scam advertisements, marking the first time a US state has taken legal action over the platform's handling of fraudulent ads.
The litigation alleges enforcement gaps driven by revenue concerns, while Meta highlights the removal of over 159 million scam ads.
According to Rhode Island Attorney General Peter Neronia, Meta knows it is exposing vulnerable users to fraud and is choosing not to take stricter measures because these ads generate revenue for it.
Meta's answer
Meta responded that it has already removed more than 159 million fake ads from its platforms. A spokesperson for the company accused the attorney general of refusing to discuss the matter with them and instead hired a private law firm out of state to pursue the lawsuit.
Previous similar actions
While this is the first time a state has taken legal action against Meta over this issue, it is not the first time the company has faced similar allegations. Similar lawsuits were filed last spring by the Consumer Federation of America in April and by Santa Clara County in California in May.
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At the same time, a 2025 journalistic study estimated that fake ads could generate billions of dollars, or up to 10 percent of Meta's total revenue.
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