Rhode Island Takes Legal Action Against Meta for Handling of Fraudulent Advertisements

Rhode Island’s Attorney General, Peter F. Neronha, has initiated legal action against Meta concerning the company’s approach to scam advertisements. The lawsuit contends that Meta has failed to effectively curb fraudulent ads on its platforms and has not acted decisively against such scams, which are believed to contribute to the company’s profits.

“For a business that engages with a significant number of Rhode Islanders and Americans, prioritizing consumer safety is crucial,” stated Neronha. “As claimed, Meta has knowingly placed vulnerable individuals at risk of fraud while reaping hefty financial gains. This office will utilize all available resources to ensure accountability when any company takes advantage of Rhode Island consumers.”

In a response, Meta spokesperson Andy Stone indicated that the company has eliminated over 159 million scam ads from its platforms. “The attorney general has not collaborated with us on strategies to protect Rhode Islanders from fraud. Instead, they have employed an out-of-state law firm to develop a lawsuit that overlooks the extensive measures we implement daily to combat scams,” Stone remarked.

According to the Attorney General’s office, Rhode Island is the first state to pursue legal action regarding the alleged neglect, although Meta has faced similar lawsuits before. The Consumer Federation of America filed a lawsuit in April, followed by Santa Clara County in California in May.

A report in 2025 highlighted by Reuters noted that scam ads on its networks could be generating billions for Meta, potentially equating to around 10 percent of its revenue. The company has taken steps to address the individuals behind these fraudulent ads and has pursued legal action against some creators. Earlier this year, Meta also incorporated additional user safeguards against suspicious communications.