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Rhode Island Sues Meta Over Alleged Profits From Scam Advertising

The state seeks restitution and civil penalties, while Meta says it will fight the case.

Updated 2 min read
Visitors approach Providence County Superior Court on an overcast afternoon in Providence, Rhode Island. / TokenPost.ai (mono)
Visitors approach Providence County Superior Court on an overcast afternoon in Providence, Rhode Island. / TokenPost.ai (mono)

Rhode Island sued Meta on Oct. 22, alleging the company’s advertising systems helped scam campaigns reach likely victims and seeking court orders to return gains and compensate consumers.

Attorney General Peter F. Neronha filed the complaint in Providence County Superior Court under the state’s Deceptive Trade Practices Act. The filing alleges Meta gave advertisers tools to shape campaigns and identify users likely to respond, including seniors.

The complaint points to ads for fake investments, impersonation schemes, false Medicare and Social Security benefit offers, and ineffective or dangerous health supplements or treatments. Reuters reported that the lawsuit includes ads on Facebook, Instagram and WhatsApp.

Rhode Island cited internal estimates first reported by Reuters, including an estimate that Meta showed users about 15 billion higher-risk scam ads per day. The attorney general’s announcement characterized another estimate as scam and restricted-goods ads accounting for about 10% of Meta’s 2024 advertising revenue, or $16 billion. Reuters’ Oct. 22 report described the $16 billion estimate as about 10% of Meta’s 2024 revenue. Meta had called the estimate “rough and overly-inclusive.” The figures are estimates cited in support of the state’s allegations, not court findings.

Rhode Island asks the court to declare that Meta violated the law, bar the alleged conduct and order restitution for consumers. The complaint also seeks civil penalties for each alleged violation and the return of gains the state says were unlawfully obtained. It asks the judge to consider appointing a receiver, auditor or monitor to supervise compliance.

Meta says it will fight the lawsuit. Spokesperson Andy Stone told Reuters the attorney general “refused to engage with us on ways we protect Rhode Islanders from scams.” Meta’s March announcement said 92% of the more than 159 million scam ads it removed in 2025 were taken down before a user report.

Rhode Island says no other state has brought this type of suit against Meta; Santa Clara County in California has brought a similar case. The attorney general’s office says legislation passed in 2021 restored its authority to enforce the consumer law on consumers’ behalf. The complaint’s allegations have not been adjudicated.

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