Rhode Island Sues Meta Over Alleged Scam Advertising on Its Platforms

Rhode Island sued Meta, alleging that Facebook, Instagram and WhatsApp tolerated and profited from fraudulent advertising. The complaint seeks civil penalties, consumer restitution and changes to ad practices; the allegations have not been tested in court, and Meta has said it aggressively fights fraud.

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Oct 23, 2026 - 12:11

Oct 23, 2026 - 13:14

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Meta company sign (file photo). Image source: Engadget source image. https://www.engadget.com/2294778/rhode-island-sues-meta-over-its-approach-to-scam-ads/

Rhode Island Sues Meta Over Alleged Scam Advertising on Its Platforms

Rhode Island sued Meta Platforms in state court on Thursday, alleging that the company tolerated and profited from scam advertising on Facebook, Instagram and WhatsApp. The case is the first scams-related lawsuit against Meta brought by a US state, according to Reuters, and follows a similar action by Santa Clara County in California.

What the complaint seeks

Attorney General Peter Neronha's office is seeking civil penalties for alleged violations of Rhode Island law, restitution for consumers, disgorgement of alleged ill-gotten gains and a court order requiring Meta to address scam advertising. The complaint alleges that Meta's automated tools sometimes helped create or optimize fraudulent ads and that banned advertisers could return with a new email address or phone number.

These are allegations in a newly filed civil case, not findings by a court. Meta had not immediately responded to Reuters about the lawsuit. In response to earlier reporting cited in the complaint, Meta spokesman Andy Stone said the company aggressively fights fraud and scams and disputed the characterization of its practices.

Scale alleged by the state

The complaint cites internal documents previously reported by Reuters, alleging that Meta showed about 15 billion higher-risk scam ads each day and received roughly 10% of its 2024 revenue from fraudulent e-commerce, dubious health products and other banned marketing. Rhode Island also cited outside research identifying nearly 94,000 scam ads and examples targeting older people.

The complaint says scammers used impersonations of public figures, banks and other trusted institutions to direct users to fraudulent investments. It also describes alleged advertisements for deepfake pornography and bogus health products.

What happens next

Meta will have the opportunity to respond in court, and the case may test how state consumer-protection law applies to platform advertising systems. The filing does not establish that every ad cited was delivered to every user or that the allegations will be proven.

Illustrative file photo of a smartphone with social media apps; not a screenshot or event involved in the report. Photo: Nathan Dumlao / Unsplash. Unsplash License; cropped to 16:9. Image source; license.