Santa Clara County Sues Meta Platforms

United States — Santa Clara County, California has filed a lawsuit against Meta Platforms, alleging the company knowingly profited from fraudulent advertisements on Meta Platforms and Meta Platforms — Instagram. The lawsuit, filed on behalf of all United States — California residents, claims Meta Platforms violated United States — California's false advertising and unfair business practices laws. Citing leaked internal documents, the county alleges Meta Platforms earned as much as $7 billion annually from 'high-risk' scam ads and largely tolerated the misconduct, even implementing 'guardrails' to limit scam reduction efforts if they impacted revenue. Meta Platforms is also accused of allowing middlemen to sell ad accounts shielded from enforcement and using its generative AI tools to assist unethical marketers. United States — Santa Clara County, California seeks restitution, civil damages, and a court order to change Meta Platforms' advertising practices. Meta Platforms has stated it will defend itself, claiming the allegations distort its motives and ignore its efforts to combat scams. This lawsuit follows similar complaints from the Consumer Federation of America and a report by the Center for Countering Digital Hate, increasing legal pressure on Meta Platforms.