Rhode Island Sues Meta for Allegedly Letting Scammers Target Vulnerable Users

Rhode Island Attorney General Peter F. Neronha has sued the social media giant Meta for allegedly profiting from fraudulent advertising while misleading the public about its efforts to prevent scams.

Filed on October 22 in Providence County Superior Court, the lawsuit alleges violations of the state’s Deceptive Trade Practices Act. Neronha’s office described Rhode Island as the first US state to bring this type of case against Meta, following similar action by California’s Santa Clara County.

The complaint alleges Meta helped create, refine, and distribute advertisements promoting fake investments, impersonation scams, false offers of Medicare and Social Security benefits, and ineffective or dangerous health products.

It also accuses the company of using account data, audience targeting, and advertising optimization tools to help advertisers reach vulnerable consumers most likely to respond to fraudulent advertisements, including senior citizens.

According to the attorney general’s office, Meta sometimes charged advertisers a premium to display fraudulent ads instead of removing them. The state alleges the company allowed scam advertising to continue because it generated substantial revenue, despite knowing consumers were suffering financial harm.

The state is seeking restitution for affected Rhode Island consumers, civil penalties, the recovery of profits from the alleged misconduct, and court orders requiring changes. It also wants a receiver, auditor, or monitor appointed to oversee compliance with any court-ordered relief.

Attorney General Neronha said: “As alleged, Meta knowingly exposed vulnerable users to fraud and scams, and made enormous profits in doing so. When companies, big or small, take advantage of Rhode Island consumers, this Office will do everything within our authority to hold them to account.”

A Meta spokesperson quoted in The Boston Globe said: “We will fight this unfounded lawsuit.”