Consumer Federation Files Lawsuit Against Meta Over $16B Annual Revenue From Scam Ads

Gate News message, April 23 — The Consumer Federation of America (CFA) has filed a class-action lawsuit against Meta Platforms in Washington, D.C. Superior Court, accusing the social media giant of knowingly generating billions in revenue from scam advertisements while failing to protect users.

According to the complaint, Meta earns approximately $7 billion annually from "high-risk" advertisements alone. Internal Meta documents cited in the lawsuit project the company earned roughly $16 billion in 2024—approximately 10% of its overall annual revenue—from allowing scam and banned goods advertising on Facebook and other platforms. The CFA contends Meta deliberately adopted policies that prioritize profits over user safety, charging high-risk advertisers more rather than prohibiting them as competitors like Google do.

The lawsuit alleges Meta violated Washington, D.C.'s Consumer Protection Procedures Act (CPPA), which prohibits unfair or deceptive trade practices in consumer goods advertising. In response, a Meta spokesperson denied the allegations, stating the company will defend itself against the claims.