Meta Sued Over Scam Ads, Earning $16B

0:00A new lawsuit just hit meta in Washington DC, filed by the Consumer Federation of America, a group repping over 200 consumer orgs. They're calling out Facebook and Instagram for flooding users with scam ads disguised as government aid, white promises of 1,400. Dollar checks based on your birth year, free government iPhones, or even ban stuff like crib bumpers. These ads often use AI-generated videos to look legit. The sue claims meta is known about these frauds for years, but hasn't cracked down hard. Instead of banning risky advertisers, they slap on higher fees, called penalty bids, so the shadier the ad, the more cash meta pockets. It's a twisted setup where bad actors pay extra to keep scamming folks. This hits hard because scams prey on everyday people chasing real help, eroding trust in the platforms, billions used daily. Reports from Reuters back it up, saying meta blasts out 15 billion scam ads every single day with over 10% of their 2024 earnings.

1:03$16 billion tied to scams, illegal gambling, and forbidden sales. Metta's pushing back strong, saying the claims twist the truth. A spokesperson noted they yanked over 159 million scam ads last year, 92% before any complaints, plus 10.9 million linked accounts. They're rolling out fresh AI tools across Facebook, Messenger, and WhatsApp to fight investment scams and sell-ed bait while beefing up advertisers. As this legal battle heats up, the suit demands a jury trial and damages for DC consumers, forcing meta to rethink how it cashes in on risky ads, while keeping users safer. That wraps Dallas News Today, brought to you with AI.