Rhode Island sues Meta over scam ads — Engadget

Rhode Island Attorney General Peter Neronha has filed a lawsuit against Meta over the company’s approach to fraudulent advertisements on its platforms. The lawsuit concerns allegations that the company does not effectively prevent the spread of such ads. Engadget reports.

Prosecutors’ allegations

The lawsuit also alleges that Meta did not take tougher action against fraudulent ads because they generate revenue for the company. Neronha said consumer safety should be a priority for a company used by many residents of Rhode Island and the United States. According to him, Meta allegedly knowingly exposed vulnerable users to the risk of fraud and made substantial profits from it.

The attorney general’s office noted that Rhode Island became the first state to file a lawsuit over Meta’s alleged inaction regarding such ads. At the same time, the company has already been a defendant in similar cases: the Consumer Federation of America filed a lawsuit in April, and Santa Clara County in California did so in May.

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Meta’s position

Meta spokesperson Andy Stone told Reuters that the company had removed more than 159 million fraudulent advertisements from its platforms. He also said that the attorney general allegedly refused to discuss with Meta ways to protect Rhode Island residents from fraud and hired a law firm from another state to prepare the lawsuit.

A 2025 Reuters report said that scam ads across Meta’s networks could generate billions of dollars in revenue for the company — potentially up to 10% of its revenue. Meta, for its part, has taken action against some organizers of fake ads, filed lawsuits against their creators, and introduced additional mechanisms this year to protect users from suspicious messages.