Santa Clara County has filed a lawsuit against Meta in California state court, alleging the company knowingly profits from scam advertisements on Facebook and Instagram. The complaint claims Meta earns up to $7 billion annually from ads bearing clear signs of fraud, that it blocked internal scam-reduction efforts deemed too costly, and that it allowed middlemen to sell enforcement-protected ad accounts. The suit draws on internal Meta documents reported by Reuters in late 2025, which suggested over 10% of Meta's 2024 revenue could come from scam ads and banned goods. The county seeks restitution for California residents, civil damages, and an injunction. This case is part of a broader wave of legal and regulatory challenges against Meta's ad platform, including a Consumer Federation of America class-action and inquiries from Japanese, UK, and Australian regulators.
