On May 11, 2026, Santa Clara County initiated legal action against Meta, accusing the company of knowingly permitting and profiting from scam advertisements that mislead users across its platforms. The lawsuit contends that Meta has earned as much as $7 billion annually from high-risk ads that are clearly fraudulent, emphasizing a pattern of negligence in managing such content.

The lawsuit alleges that rather than taking robust measures to eliminate fraudulent advertisements, Meta has tolerated their existence and even inhibited efforts to counteract scam ads when those measures conflicted with potential revenue. County Counsel Tony LoPresti stated, “The scale of Meta’s misconduct has reached an extraordinary level, and it needs to stop,” highlighting the company's failure to act against known abusive practices.

Santa Clara County's filing indicates that Meta has contributed to a broader epidemic of online fraud by allowing middlemen to sell protected ad accounts, making it difficult to hold unethical advertisers accountable. Furthermore, the lawsuit claims that Meta’s generative artificial intelligence systems have assisted scam marketers in crafting deceptive advertisements.

In response to the allegations, a Meta spokesperson reiterated the company's commitment to fighting scams, arguing that scams are detrimental both to users and to legitimate advertisers. Meta has previously claimed to actively remove millions of scam ads from its platforms annually.

The situation has raised concerns about the responsibilities of tech companies regarding ad content, as users frequently fall victim to fraudulent schemes linked to products such as financial scams and fake health treatments. The county and its legal partners will oversee this significant case, maintaining full control while collaborating with external law firms for support.

The resolution of this lawsuit could set important precedents regarding accountability for digital advertising practices, particularly in how platforms like Meta manage the content published by their users. The outcomes may also impact future regulatory measures concerning online advertisements and consumer protections.