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Santa Clara sues Meta for profiting from scam ads on Facebook and Instagram

Market News
11 May 2026
CNET
Bearish
pluang ai news

Santa Clara County in California has filed a lawsuit against Meta, accusing the company of knowingly earning nearly $7 billion annually from scam ads on Facebook and Instagram. The suit claims Meta used AI and targeted techniques to connect vulnerable users with fraudulent ads, violating California's false advertising laws. The county seeks restitution, civil damages, and a permanent ban on such practices. Meta denies the allegations, stating it actively fights scams and removed over 159 million scam ads last year.

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