Meta Accused of Misleading Consumers, Being ‘Pillar of the Global Fraud Economy’
Posted on: April 25, 2026, 10:02h.
Last updated on: April 25, 2026, 10:02h.
- Meta is accused of allowing ads linked to illegal gambling on its tech platforms
- The Facebook parent claims it works to block ads related to scams on its social media
Facebook and Instagram parent Meta Platforms has been sued in the Superior Court of the District of Columbia on allegations that the tech giant has misled consumers by allowing advertising from scam companies, including illegal gambling operators.
The Consumer Federation of America (CFA) alleges in the civil lawsuit that Meta’s social media platforms are rife with fraud. The complaint argues that Meta has lied to consumers about claims that it works diligently to block advertising linked to fraudulent businesses and scams.
The CFA claims that Facebook and Instagram, along with other Meta platforms, including WhatsApp and Threads, knowingly allow scam advertising.
Rather than prohibiting advertisers the company itself determined as higher risk, Meta chose to charge these advertisers a higher rate, increasing their profits by allowing higher-risk advertisers access to their users,” the CFA release on the litigation read.
Last November, Reuters obtained an internal Meta document from 2024 that showed that the tech company estimated that 10% of its revenue would come from scam ads related to illegal gambling, the selling of banned medical products, pornography, and other supposedly banned content.
“We need to make significant investments to reduce growing harm,” the internal Meta document reportedly read.
Illegal Gambling Rampant
The CFA’s allegations include that Meta allows illegal gambling enterprises to use its social media and communication platforms to advertise. By deceiving social media users into gambling on such illegal websites and apps, the CFA says Meta is participating and serving as a “pillar” of the “global fraud economy.”
As Americans lose more and more money to online scams, Meta has consistently chosen to prioritize profit over the safety of their users,” said Ben Winters, the director of AI and data privacy at the CFA.
“Congress has failed to hold Meta accountable, the Trump Administration has become a Big Tech lobbying firm, and State AGs are stretched thin. Today, CFA is choosing direct action to protect DC residents, and will continue to champion protecting all consumers from the devastating harms of online scams,” Winters added.
Meta’s advertising terms, per the company’s Advertising Standards on Fraud, Scams, and Deceptive Practices, prohibit ads that attempt to “scam or defraud users by means of … gambling fraud and scams.”
Proposed Class-Action Lawsuit
The CFA is proposing a class-action lawsuit consisting of DC-based Meta users and demanding a jury trial. The lawsuit seeks the recovery of consumer financial damages, the illegal profits made by Meta on the scam advertising revenue, and an injunctive relief for DC consumers to prevent Meta from further violating the DC Consumer Protection Procedures Act.
Meta has not yet responded to the CFA litigation.
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