U.S. Senators Demand Regulatory Action Over Meta's Profits From Fraudulent Ads

U.S. Senators Richard Blumenthal (D‑Conn.) and Josh Hawley (R‑Mo.) have called for federal regulators to investigate Meta Platforms, Inc. over allegations that the company profits from fraudulent advertising on Facebook and Instagram.

The senators cited Reuters reports based on internal Meta documents, which suggest the company earns billions, potentially up to $16 billion annually, from ads promoting scams, illegal products, and fraudulent schemes.

In a letter to the Federal Trade Commission (FTC) and the Securities and Exchange Commission (SEC), Blumenthal and Hawley urged immediate investigations. “Meta's central, facilitating role in scams against consumers is unprecedented: by its own employees' assessment, Meta was involved in one-third of all successful scams in the U.S. and was unmatched by other Big Tech platforms,” they wrote.

The senators are urging the agencies to take appropriate enforcement action if their investigation confirms the reports, including forcing Meta to disgorge profits from fraudulent ads, imposing steep civil penalties, holding individual executives personally accountable, and seeking binding terms.

They allege Meta knowingly enabled and profited from illicit activity, pointing to the ongoing presence of scam ads in its public ad library, including crypto fraud, illegal gambling, and deepfake impersonations of politicians.

The senators also allege that Meta cut back on safety staff, including for FTC-mandated reviews, while investing heavily in AI. This is believed to have exacerbated the proliferation of scams.