Meta has misled users about scam ads on Facebook and Instagram, lawsuit says - Engadget

The company is being sued by the nonprofit Consumer Federation of America. Meta is facing a new lawsuit over its advertising practices. The nonprofit group Consumer Federation of America (CFA) has filed a proposed class-action suit against Meta for "failing to protect users" from scam ads on Facebook and Instagram. The lawsuit, which was first reported by Wired, alleges that Meta has run afoul of consumer protection laws in Washington D.C. for misleading Facebook and Instagram users about scams on its apps and that the company has "chased profits rather than protecting its users." The filing includes numerous examples of alleged scam ads that CFA says it found in Meta's ad library. These include ads promoting a "free government iPhone," as well as those claiming to offer $1,400 checks to people born in certain years. Many of the ads use AI videos, according to CFA. Some of examples of alleged scam ads CFA includes in its lawsuit. Meta's advertising practices have been in the spotlight since last year when Reuters reported on internal documents that indicated the company was making billions of dollars from ads promoting scams and banned goods. The report also highlighted how Meta's