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Rhode Island Says Meta Ads Posing ‘Higher Legal Risk’ Generated $7 Billion a Year

The state is asking a court to penalize Meta and restrict its advertising practices, citing a daily estimate of ads with fraud signs and a separate annual figure for ads posing higher legal risk.

Updated 2 min read
A figure approaches Providence County Superior Court on an overcast morning in Providence, Rhode Island. / EconoTimes.ai
A figure approaches Providence County Superior Court on an overcast morning in Providence, Rhode Island. / EconoTimes.ai

Rhode Island seeks penalties against Meta over alleged fraud in its ad system, citing separate estimates for daily ads with fraud signs and annual revenue from ads it says posed higher legal risk.

Filed Oct. 22 in Providence County Superior Court, the complaint says Meta showed users an estimated 15 billion ads each day with clear signs of fraud. The filing separately estimates annual revenue of $7 billion from ads it describes as presenting “higher legal risk.” The state accuses Meta of violating Rhode Island’s Deceptive Trade Practices Act and seeks civil penalties, court orders barring the alleged practices, consumer restitution and the return of gains it says were unlawfully obtained.

Attorney General Peter F. Neronha said, “As alleged, Meta knowingly exposed vulnerable users to fraud and scams, and made enormous profits in doing so.” Meta has said it will fight the case. Spokesperson Andy Stone told Reuters the attorney general “refused to engage with us on ways we protect Rhode Islanders from scams.” No court has ruled on the allegations.

The complaint describes alleged fake investment offers, impersonation schemes and false Medicare and Social Security benefit offers. It also alleges that Meta’s ad-targeting tools could help advertisers reach people likely to respond, including seniors, as outlined in earlier coverage of the complaint.

In a March announcement, Meta said it removed more than 159 million scam ads in 2025 and that 92% were taken down before a user reported them. That company figure is separate from the estimates Rhode Island cites in its complaint.

The state says no other state has brought this type of case against Meta; Santa Clara County, California, has filed a similar suit, according to the Rhode Island attorney general’s office. Rhode Island also asks the court to consider appointing a receiver, auditor or monitor to oversee Meta’s compliance.

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