Santa Clara County is suing Meta regarding fraudulent advertisements on Facebook and Instagram.

      The complaint, submitted on behalf of residents in California, claims that Meta generates as much as $7 billion annually from "high-risk" scam advertisements and has tolerated this practice. The county is seeking restitution, civil damages, and an injunction.

      Santa Clara County has initiated a lawsuit against Meta Platforms in California state court, accusing the company of profiting from scam advertisements on Facebook and Instagram, which allegedly breaches California's laws on false advertising and unfair business practices.

      This lawsuit, filed on Monday in Santa Clara County Superior Court on behalf of all California residents, asserts that Meta's annual revenue from advertisements showing clear signs of fraud could reach $7 billion.

      The complaint states that Meta "largely tolerated" these unethical practices and created internal barriers to prevent effective scam-reduction measures that would have been costly for the company.

      Additionally, the county claims that Meta permitted intermediaries to sell ad accounts that were shielded from enforcement and that the company directed scam advertisements toward users who had previously engaged with similar fraudulent listings.

      The complaint references internal documents that were first reported by Reuters in November 2025, suggesting that Meta's own forecasts predicted over 10% of its 2024 annual revenue, approximately $16 billion, would derive from advertising scams and prohibited goods.

      Earlier litigation by the Consumer Federation of America has also referenced this set of documents.

      The lawsuit is seeking restitution for impacted California residents, civil damages, and a ruling barring Meta from persisting with the alleged practices.

      Meta has not responded immediately to a request for comment. The company has previously stated that it removes scam content and employs dedicated teams to enforce its policies. In April, it filed its own lawsuits against advertisers involved in scams impersonating celebrities.

      The Santa Clara County complaint adds to a multifaceted legal challenge concerning Meta's advertising platform. A class-action lawsuit filed in Washington, DC, by the Consumer Federation of America addresses similar issues. Over the past year, 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 Meta's platforms.

      The Santa Clara case is being managed by the county counsel's office, with a scheduling order expected within thirty days.