Santa Clara County files a lawsuit against Meta concerning fraudulent advertisements on Facebook and Instagram.

      The complaint, lodged on behalf of residents in California, claims that Meta generates up to $7 billion annually from “high-risk” scam advertisements and has permitted this practice. The county seeks restitution, civil penalties, and an injunction.

      Santa Clara County has initiated a lawsuit against Meta Platforms in California state court, asserting that the company profits from fraudulent advertising on Facebook and Instagram, breaching California’s false-advertising and unfair-business-practices laws.

      The lawsuit, submitted on Monday in Santa Clara County Superior Court on behalf of all California residents, contends that Meta potentially earns as much as $7 billion each year from ads that exhibit obvious indications of fraud.

      The complaint alleges that Meta has “largely tolerated” such misconduct and has implemented internal measures that hinder scam-prevention efforts due to their cost implications for the company.

      Furthermore, the county claims that Meta has permitted intermediaries to sell ad accounts that were shielded from enforcement actions and that the company directed scam ads at users who had previously engaged with similar fraudulent content.

      The complaint references internal documents first revealed by Reuters in November 2025, which showed that Meta’s own estimates projected that more than 10% of its annual revenue for 2024, approximately $16 billion, would be derived from advertising scams and prohibited products.

      Previous litigation from the Consumer Federation of America also referenced these documents. The lawsuit aims to provide restitution to affected California residents, seek civil damages, and issue a directive preventing Meta from persisting with the alleged actions.

      Meta has not yet responded to a request for comment. The company has previously stated that it removes scam content and has dedicated teams focused on enforcing its policies. In April, Meta filed its own lawsuits against advertisers associated with celebrity-impersonation scams.

      The complaint from Santa Clara County represents the latest in a series of legal challenges targeting Meta’s advertising platform. A class-action lawsuit filed in Washington, DC, by the Consumer Federation of America addresses similar issues. Additionally, Japanese regulators, the UK’s Online Safety Act enforcement team, and the Australian Competition and Consumer Commission have all launched parallel investigations into scam-advertising practices on the company's platforms over the past year.

      The Santa Clara case is being managed by the county counsel’s office, and a scheduling order is anticipated within thirty days.