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Home/Tech/Rhode Island sues Meta, alleging it profits from scam ads
VERIFIEDBy Xavier Rivera·Thursday, October 22, 2026 at 7:16 PM AST·2.5 min read

Rhode Island sues Meta, alleging it profits from scam ads

Rhode Island Attorney General Peter Neronha sued Meta on October 22, 2026, alleging it lets scam ads spread on its platforms for profit. The AG's office says it is the first state suit against Meta over this conduct. A Meta spokesperson says the company will fight the "unfounded" lawsuit.

Source:Rhode Island Attorney General
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Rhode Island sues Meta, alleging it profits from scam ads
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  • Rhode Island alleges Meta knowingly ran and profited from scam ads on Facebook and Instagram.
  • If you see an ad that looks like a scam, report it and do not send money or personal details.
  • The case is at an early stage; no court has found that Meta broke the law.

Rhode Island Attorney General Peter F. Neronha filed a lawsuit against Meta on October 22, 2026, according to his office's press release. The suit alleges Meta failed to curb fraudulent ads while telling the public it works hard to stop them.


What the state alleges. The complaint, filed in Providence County Superior Court, alleges Meta kept scam ads running because they made money. The state alleges this violates Rhode Island's Deceptive Trade Practices Act. It alleges Meta helped advertisers target the users most likely to fall for scams, including seniors.


The numbers in the complaint. The complaint alleges Meta showed users an estimated 15 billion ads containing clear signs of being fraudulent every day, citing internal Meta documents first reported by Reuters. It also alleges that ads that "present higher legal risk" yielded $7 billion annually in revenue. That figure is not a total for scam ads, and both are allegations, not findings.

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A first for a state. The AG's office says Rhode Island is the first state to sue Meta over this conduct. It follows a similar suit by Santa Clara County, California.


What Rhode Island wants. The state seeks a declaratory judgment that Meta violated the law, an injunction and civil penalties. It also seeks restitution for Rhode Island consumers and disgorgement of profits. And it asks the court to appoint a receiver, auditor, or monitor to oversee Meta's compliance.

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What Meta says. "We will fight this unfounded lawsuit," a Meta spokesperson told the Boston Globe. Meta says it removed more than 159 million scam ads in the past year.


In plain terms. Rhode Island says Meta knew lots of scam ads were running on its apps and kept taking money for them. Meta denies this. A court will decide.


Key terms.

  • Deceptive Trade Practices Act: A Rhode Island law that bans unfair or misleading business practices.
  • Declaratory judgment: A court ruling that states whether the law was broken.
  • Injunction: A court order requiring a company to do, or stop doing, something.
  • Restitution: Money paid back to people who were harmed.
  • Disgorgement: Giving up profits made from the alleged wrongdoing.

What users can do now. This is common advice, not guidance from the AG's office.

  1. Treat ads offering quick investment returns, government benefits or miracle cures as likely scams.
  2. Report suspicious ads with the menu on the ad in Facebook or Instagram.
  3. Never send money or personal details through a link in an ad.
  4. Report losses to the Rhode Island Attorney General's office at (401) 274-4400.
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What is next. Meta has not yet filed a formal response in court, and no hearing date has been announced. Updates will be posted on the AG's press release page. Reuters also reported the suit.

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