"Santa Clara County sued Meta on Monday, accusing the tech giant of turning scam advertisements on Facebook and Instagram into a multibillion-dollar revenue stream while Californians lost billions to online fraud. The lawsuit alleges Meta knowingly allowed fraudulent ads to remain on its platforms, charged higher prices for some flagged ads and limited enforcement when fraud prevention threatened the company's bottom line."
"The case puts a Silicon Valley county in direct conflict with one of the world's most powerful tech companies over who should bear responsibility for fraud that spreads through online advertising systems. County officials described the case as the first such lawsuit by a local civil prosecutor in the nation targeting a major tech company over allegations that it knowingly enabled and profited from widespread deception and unfair business practices."
""This case is about accountability. It's about ensuring that as behemoth tech companies open up new frontiers in our society, that they aren't lawless frontiers," Santa Clara County Counsel Tony LoPresti said Monday at a news conference. "Meta has lied to its users and violated the law for years.""
"LoPresti alleges that Meta's internal documentation shows that the company's platforms host about one-third of all internet scams - resulting in $2.5 billion in losses for California residents in 2024, county officials said. These scam advertisements boast products ranging from fake financial products and miracle cures for incurable diseases to recreations of celebrities requesting money and cryptocurrency scams."
Santa Clara County sued Meta in California state court, alleging the company knowingly allowed scam advertisements on Facebook and Instagram to generate multibillion-dollar revenue while Californians lost billions to online fraud. The lawsuit claims Meta charged higher prices for some ads that were flagged and limited enforcement when fraud prevention threatened its financial interests. County officials describe the case as a first-of-its-kind effort by a local civil prosecutor targeting a major tech company over allegations of enabling deception and unfair business practices. The complaint alleges violations of California false advertising and unfair competition laws and seeks restitution, civil penalties, and a court order requiring changes to Meta’s practices. Meta’s internal documentation is cited to support claims about the scale of scams on its platforms.
Read at San Diego Union-Tribune
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