Key Moments
- The Consumer Federation of America filed a class-action complaint in Washington, D.C., accusing Meta Platforms of profiting from scam-related advertising.
- Internal Meta estimates cited in the complaint indicate users were shown 15 billion “higher risk” scam ads per day in 2024, generating an annualized $7 billion in revenue.
- Meta is alleged to have projected that about 10% of its 2024 annual revenue – or $16 billion – would come from ads for scams and banned goods, according to internal documents reported by Reuters.
Consumer Federation Targets Meta in D.C. Class Action
The Consumer Federation of America (CFA) has initiated a class-action lawsuit against Meta Platforms, asserting that the company financially benefited from advertisements promoting fraudulent schemes on its services and misled users about its response to such activity.
The complaint, filed Tuesday in Superior Court in Washington, D.C., describes CFA as an association of non-profit consumer organizations and requests a jury trial. It seeks monetary recovery for consumers in the local jurisdiction who were allegedly harmed.
According to the filing, “Meta has knowingly taken steps and adopted policies that pad its bottom line at the expense of its users’ safety and well-being.”
Allegations Tied to Internal Data on Scam Ads
The lawsuit relies in part on prior Reuters reporting that drew on internal Meta documentation to illustrate the extent of scam-related advertising on Facebook and Instagram. The complaint states that Meta’s own 2024 estimates showed the company delivering 15 billion “higher risk” scam ads each day, yielding an annualized $7 billion in revenue.
Reuters also reported that Meta internally projected in 2024 that it would generate approximately 10% of its total yearly revenue – or $16 billion – from ads connected to scams and banned goods, based on internal company records referenced in the complaint.
| Metric | Figure | Period / Context |
|---|---|---|
| Daily “higher risk” scam ads shown to users | 15 billion | Meta 2024 internal estimate |
| Annualized revenue from “higher risk” scam ads | $7 billion | Meta 2024 internal estimate |
| Projected share of annual revenue from scams and banned goods ads | 10% | Meta 2024 internal projection |
| Projected revenue from scams and banned goods ads | $16 billion | Meta 2024 internal projection |
Meta Responds, Citing Verification Efforts
In response to the CFA’s legal action, Meta issued a statement asserting: “These allegations misrepresent the reality of our work and we will fight them.”
The company also referred to an announcement made last month, in which it said it was broadening its advertiser-verification measures. Meta noted that it had started blocking financial services-related advertisements from directing users to private messaging channels, described as a common tactic used by financial scammers.
Claims of Downplaying Risks and Tolerating Scam Partners
The CFA complaint contends that “Meta has repeatedly and publicly downplayed the risks of scams on its platforms to its users – creating a false impression of safety.”
The filing further alleges that Meta has allowed extensive scam advertising by certain business partners in China, as previously detailed by Reuters. These partners reportedly include digital advertising intermediaries that Meta has authorized to resell ad inventory through so-called “agency accounts.”
To protect that revenue stream, the complaint claims, Meta continued to accept advertising through a system that enabled fraudulent activities.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
