In a significant bipartisan move, two prominent US Senators have called for immediate federal investigations into Meta Platforms Inc., the parent company of Facebook and Instagram, over allegations that the tech giant earns billions in revenue from scam advertisements.
Bipartisan Senators Demand Action Against Meta
Republican Senator Josh Hawley and Democratic Senator Richard Blumenthal have jointly written to the Federal Trade Commission (FTC) and the Securities and Exchange Commission (SEC), demanding an immediate probe into what they describe as widespread fraudulent advertising on Meta's platforms.
The senators cited a Reuters report that revealed internal Meta documents indicating the company earned approximately $16 billion in revenue from illicit advertising in 2024, representing about 10% of its total revenue. One document specifically noted that Meta generates $3.5 billion from 'higher risk' scam ads every six months.
Evidence of Widespread Fraudulent Advertising
In their letter to the federal agencies, the bipartisan pair expressed serious concerns about Meta's current advertising practices. They pointed to the company's own Ad Library, which they claim continues to display 'clearly identifiable advertisements for illicit gambling, payment scams, crypto scams, AI deepfake sex services, and fake offers of federal benefits.'
The senators accused Meta of making a conscious business decision to tolerate fraudulent advertisements while simultaneously reducing its safety infrastructure. They noted that the company has 'drastically cut its safety staff... even as it dumps unimaginable sums into its generative AI projects.'
Meta's Response and Counter Claims
Meta spokesman Andy Stone strongly denied the allegations, stating that the senators' letter 'makes claims that are exaggerated and wrong.'
Stone asserted that Meta aggressively fights fraud and scams because neither users nor legitimate advertisers want such content on the platforms. He highlighted that the company has successfully reduced user reports of scams by 58% over the last eighteen months, indicating their commitment to addressing the issue.
The senators, however, remain skeptical about Meta's efforts and have urged the FTC and SEC to 'pursue vigorous enforcement action where appropriate' to compel Meta to disgorge profits, pay penalties, and cease running such advertisements permanently.
