Santa Clara County filed a lawsuit against Meta Platforms in May 2026, alleging the company profited from scam advertisements running on Facebook and Instagram in violation of California law.
The county’s complaint accuses Meta of breaching California’s false advertising and unfair business practices laws. According to the lawsuit, Meta reportedly earned billions of dollars from these high-risk scam ads, while tolerating the misconduct and actively hindering efforts to reduce it.
The lawsuit names Meta Platforms as the sole defendant and was brought by Santa Clara County, located in California. The county is seeking restitution and damages as part of the legal action.
The case centers on claims that Meta allowed fraudulent advertising to persist on its platforms despite the harm caused to users, and that the company’s actions — or inactions — enabled scammers to reach consumers through its ad systems. The county’s allegations suggest Meta prioritized ad revenue over user protection.
If successful, the lawsuit could result in significant financial penalties for Meta and may signal increased legal scrutiny of how large social media platforms vet and profit from advertising content. The outcome could also have broader implications for how California’s consumer protection laws are applied to digital advertising practices.
Source: Tech-Economic Times