The complaint, filed on behalf of California residents, alleges that Meta made up to $7 billion a year from “high-risk” fraudulent ads and tolerated the practice. The county seeks restitution, civil damages and an injunction.
The Santa Clara County company sued Meta Platforms in California state court Facebook scammer earns from advertising and Instagram in violation of California’s false advertising and unfair business practice laws.
The lawsuit, filed Monday in Santa Clara County Superior Court on behalf of all California residents, alleges that Meta generates $7 billion in annual revenue from ads with clear signs of fraud.
The complaint states that Meta “highly tolerates” misconduct and has built internal safeguards to block efforts to reduce fraud, which has cost the company a lot of money.
The county also alleges that Meta allowed intermediaries to sell enforcement-protected ad accounts and that the company previously targeted fraudulent ads at users who clicked on similar fraudulent listings.
The complaint is based on internal documents, first reported by Reuters in November 2025, that show Meta’s own projections will generate more than 10% of its annual revenue of about $16 billion in 2024. advertising fraud and prohibited goods.
Prior personal litigation He cited the same set of documents from the Consumer Federation of America.
The suit seeks compensation for the affected California residents, civil damages and an injunction to prohibit Meta from continuing the alleged practices.
Meta did not immediately respond to a request for comment. The company has previously said it removes fraudulent content and has dedicated teams working to enforce its policies.
In April, he filed his own lawsuits against advertisers who have engaged in celebrity impersonation scams.
Santa Clara County’s complaint is the latest in a multifaceted legal challenge over Meta’s ad platform.
A group of lawsuits filed in Washington by the Consumer Federation of America covers similar grounds. Japanese regulators, the UK’s Online Safety Act enforcement team and the Australian Competition and Consumer Commission have opened parallel inquiries into the company’s fraudulent advertising practices on its platforms over the past twelve months.
The Santa Clara case is handled by the county attorney’s office and a A planning order is expected within thirty days.
