The Consumer Federation of America (CFA) has filed a class-action lawsuit against Meta Platforms, accusing the social media giant of failing to protect users from fraudulent ads.
CFA, an association of consumer non-profit organizations, is Strive To recover damages and ill-gotten gains after filing a suit in the Supreme Court in Washington, DC
The complaint says
“Meta claims that it is doing everything it can to eliminate fraudulent advertising on its platforms. But in reality, Meta has deliberately taken steps and adopted policies that support its bottom line at the expense of the safety and well-being of its users. In fact, instead of banning advertisers that the company itself has determined pose a greater risk to its users (as other tech companies like Google have done), Meta charges only those advertisers higher fees.”
The lawsuit claims Meta makes billions of dollars annually through fraudulent advertising.
“Meta earns nearly $7 billion in annual revenue from this category of ‘high-risk’ advertising alone. In 2024, internal documents at Meta project that it will earn about 10% of its total annual revenue, about $16 billion, from allowing ads for scams and prohibited goods to run on its platforms, including Facebook.”
In a statement to the media, a Meta spokesperson denied the allegations.
“These allegations misrepresent the reality of our work and we will fight them.”
The lawsuit alleges that Meta is violating D.C.’s Consumer Protection Procedure Act (CPPA), a law that makes it illegal to “engage in an unfair or deceptive trade practice” and prohibits illegal business practices in connection with advertising for consumer goods and services.
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