Rhode Island has sued Meta over its handling of scam ads on its platforms, becoming the first state to take legal action against the social media company on these allegations. The lawsuit targets how Meta approaches fraud and scams affecting Rhode Islanders and other Americans.
Attorney General Peter Neronha said consumer safety standards should be a priority for a company that reaches so many people in the state and across the country. He alleged that Meta knowingly exposed vulnerable users to fraud and scams and earned enormous profits in the process. Neronha said his office will do everything within its authority to hold companies accountable when they take advantage of Rhode Island consumers.
Meta spokesperson Andy Stone told Reuters, which first reported the state lawsuit, that the company has removed more than 159 million scam ads from its platforms. Stone said the attorney general declined to work with the company on the ways it protects Rhode Islanders from scams. He also said the state hired an out-of-state private law firm to assemble a lawsuit that he said disregards the actions Meta takes against scams every day.
The attorney general's office said Rhode Island is the first state to take action over the alleged inaction. The suit is not the first time Meta has faced litigation on this subject. The Consumer Federation of America filed a lawsuit in April, and Santa Clara County in California filed one in May.
The case adds a state-level consumer protection front to the scrutiny Meta faces over scam advertising on its platforms. It also places Rhode Island among the governments and organizations that have pursued the company in court over the issue.
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