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Rhode Island

Rhode Island sues Meta, alleging the company profits from scam ads

Attorney General Peter F. Neronha's lawsuit says Meta helped advertisers target vulnerable users with fraudulent ads while telling the public it worked to stop them.

PROVIDENCE, R.I. — Rhode Island Attorney General Peter F. Neronha sued Meta on Thursday, accusing the company of failing to curb advertisements for scams and fraudulent products on its platforms while telling the public it made sophisticated efforts to keep them off.

The complaint, filed in Providence County Superior Court, alleges Meta violated the state's Deceptive Trade Practices Act. Neronha's office said Rhode Island is the first state to sue Meta over the issue, following a similar lawsuit brought by Santa Clara County, Calif.

According to the complaint, Meta helped create, refine and distribute ads promoting impersonation scams, fake investment opportunities, false Medicare and Social Security benefit offers, and ineffective or dangerous health supplements and treatments. The state alleges Meta used data from users' accounts to help advertisers reach the people most likely to respond to such ads. Older people in particular have lost substantial sums to scam ads on Meta platforms, the attorney general's office said.

The lawsuit also alleges that Meta knowingly showed users an estimated 15 billion ads with clear signs of fraud every day, that ads presenting "higher legal risk" brought in $7 billion a year, and that in some cases Meta charged advertisers a premium to run fraudulent ads rather than removing them. The complaint cites 2025 reporting by Reuters that about 10% of Meta's annual ad revenue, or $16 billion, came from ads for scams or restricted goods.

The state is seeking civil penalties, restitution for Rhode Island consumers, a court order barring the practices, the surrender of profits tied to the alleged conduct, and the appointment of a monitor to oversee Meta's compliance.

The allegations have not been proven in court. The attorney general's statement did not include a response from Meta.

The lawsuit follows a multistate settlement with Meta in August, which requires the company to add safety features for children on Instagram and Facebook. Neronha's office said Rhode Island will receive up to $64.5 million from that settlement.

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