A county in California has taken legal action against Meta Platforms, the prominent parent company of social media giants like Facebook, Instagram, WhatsApp, Messenger, and Threads. The lawsuit, filed by Santa Clara County, accuses Meta of profiting knowingly from deceptive advertising practices, claiming these scams have generated significant annual revenues amounting to billion.
This lawsuit marks a continuation of mounting legal pressure on Meta concerning its business ethics. Earlier this year, a landmark ruling revealed that the company had inflicted harm on young users through design features intended to be addictive. With revenues exceeding 0 billion in 2025, Meta has also faced criticism from organizations like the Consumer Federation of America, which alleges that the company’s handling of scam-related content contravenes consumer protection laws.
According to the lawsuit, Santa Clara County asserts that Meta has created an environment where fraudulent advertisements are both facilitated and monetized due to the company’s advertising moderation processes. Allegations indicate that rather than eliminating scam ads, Meta only flags potential offenders. Internal documents reveal that the company only prevents marketers from advertising when there is a 95% certainty of fraud. Those that fall below this threshold are charged heightened fees to continue running their ads, as revealed in a 2025 investigation conducted by Reuters.
The lawsuit defines various scams on the platform, which include deceptive financial products, cryptocurrency schemes, unproven health remedies, and false impersonations of celebrities soliciting funds. Santa Clara County Counsel Tony LoPresti highlighted the direct impact of these ads on real individuals, claiming that vulnerable populations often bear the brunt of the consequences.
In 2024, California residents reported losses exceeding .5 billion attributed to scammers, with senior citizens being disproportionately affected. In response, a Meta spokesperson stated that the lawsuit misrepresents the company’s intentions and overlooks their extensive efforts to combat scams.
Santa Clara County’s decision to launch this lawsuit is particularly noteworthy given its status as one of the wealthiest regions globally, housing a large part of Silicon Valley, a nexus of technological innovation. The lawsuit is representative of all California residents, emphasizing that Meta’s core business operations are grounded in California, specifically Santa Clara County.
LoPresti emphasized the urgency with which civil prosecutors must act against a tech company of Meta’s magnitude to prevent the perpetuation of deceptive practices. Meta has faced numerous lawsuits since its establishment in 2004, predominantly relating to issues of content moderation and privacy.
The recent judicial ruling, which found Meta and its assets guilty of potentially harmful practices, could set a significant precedent for future legal challenges. This ruling aligns with a growing recognition that social media companies may bear legal responsibility for their actions affecting users’ well-being. Additionally, another jury in New Mexico concluded that Meta had breached state laws by failing to safeguard children from online predators.
As scrutiny of Meta’s practices continues to mount, a recent lawsuit by the Consumer Federation of America similarly claims that the company has consistently failed to uphold its commitments to user protection.
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