•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Santa Clara County Counsel Tony LoPresti has filed a civil prosecution against Meta Platforms, Inc., alleging that the company knowingly facilitates and profits from billions of scam advertisements on its Facebook and Instagram platforms. The lawsuit, filed in Santa Clara County Superior Court, is described as the first such case brought in California and the first brought by a local civil prosecutor in the nation.
The complaint alleges that Meta tracks the volume of scam ads shown to users, with figures cited as high as 15 billion scam ads displayed each day across its platforms. It also alleges that Meta derives an estimated $7 billion in annual “violating revenue,” defined in the filing as revenue resulting from fraudulent or otherwise prohibited advertisements.
According to the complaint, Meta’s systems flag ads that are likely scams, but rather than stopping them, the company allegedly charges scammers a premium price to run the ads—an approach the filing says both facilitates and monetizes deception.
The lawsuit further alleges that Meta’s artificial intelligence tools and related programs actively target vulnerable consumers and contribute to creating and refining scam advertisements.
LoPresti said Meta’s platforms have become a “preferred hunting ground for scammers,” and that the lawsuit alleges Meta “not only knows it, but has put in place systems and tools to ensure it profits from it.” He added that no corporation is above the law and that the office cannot allow a company as powerful as Meta to continue what it characterizes as a worldwide scheme to deceive consumers.
The complaint alleges that Meta maintains a network of thousands of “Business Partners” that help scammers post ads. It says many of these partners, described by Meta as “trusted” experts, advertise their ability to post scam ads on Meta’s platforms.
The scams described in the filing include fraudulent financial products, cryptocurrency schemes, purported cures for incurable diseases, ineffective nutritional supplements, and impersonations of celebrities soliciting monetary contributions.
The filing alleges that Meta’s internal documents estimate that its platforms host a third of all U.S. internet scams and contribute to more than $2.5 billion in losses for Californians in 2024 alone.
It further states that Californians over 60 lost more than $800 million, and that nationwide older adults reported losses more than four times the average.
The lawsuit alleges that Meta’s practices flood ad auctions with fraudulent ads, increasing costs for legitimate small businesses. It also alleges that Meta’s AI tools generate and test thousands of ad variations in ways described in the filing as making ads more misleading, and that Meta’s algorithms then steer deceptive ads toward people most vulnerable to harm, including users who previously clicked on scam ads.
The complaint also alleges that Meta publicly emphasizes safety while internally prioritizing revenue, including through “revenue guardrails” that limit enforcement against scam ads.
LoPresti is asking the court to stop Meta’s alleged unlawful practices through injunctive relief, require restitution for money lost as a result of Meta’s actions, and impose civil penalties. The filing seeks enhanced penalties for violations affecting senior citizens and treble remedies available under California law to deter wrongdoing against vulnerable populations.
The complaint points to Meta’s reported nearly $201 billion in revenue in 2025, stating that about 98% came from advertising, and that ad impressions continue to rise. It argues that a company of that size should not treat regulatory fines as a cost of doing business while Californians experience substantial financial and emotional losses.
The action is brought by the People of the State of California, acting through Santa Clara County Counsel Tony LoPresti, with assistance from outside special counsel Bernstein Litowitz Berger & Grossmann LLP (BLB&G), Bishop Partnoy LLP, and Renne Public Law Group LLP.
BLB&G Partner Avi Josefson said the evidence shows Meta “doesn’t just fail to stop scam ads—it actively participates in creating them through its AI tools, profits from them through its ad auction system, and steers them toward the consumers most likely to be deceived.”
BLB&G Partner Anya Freedman said the complaint describes how Meta used artificial intelligence, opaque auction systems, and weakened safeguards to facilitate billions of dollars in scam advertising while publicly promising the opposite.
The case is People of the State of California v. Meta.
Contact: Avi Josefson: avi@blbglaw.com
Premium gym chains are entering a “golden era” that is ending or already in decline, as rising operating costs collide with shifting consumer preferences toward more flexible, community-based ways to exercise. Long-term memberships are shrinking, margins are pressured by higher rents and facility expenses, and competition from smaller, more personalized…
