Rhode Island sues Meta over scam ads on Facebook, Instagram and WhatsApp

Rhode Island has sued Meta over scam ads, accusing the company behind Facebook, Instagram and WhatsApp of profiting from fraudulent advertising while doing too little to stop it. The Rhode Island Meta lawsuit, announced Thursday, October 22, by Attorney General Peter F. Neronha, makes the state the first in the country to bring these specific allegations against Meta. It lands just weeks after Meta agreed to a giant multistate settlement over other issues, and it puts a spotlight on a problem many users see in their feeds every day.

What happened

According to the attorney general's office, the complaint was filed in Providence County Superior Court under Rhode Island's Deceptive Trade Practices Act. The state says Meta helped create and spread scam ads, including impersonation scams, fake investment offers, false Medicare and Social Security offers, and ads for dangerous health supplements.

The complaint also alleges that Meta used accountholder data to target vulnerable people, including seniors, with these ads. That is a serious claim, because it suggests the same ad targeting tools that make Meta valuable to legitimate advertisers may also help scammers find their best victims.

"As alleged, Meta knowingly exposed vulnerable users to fraud and scams, and made enormous profits in doing so," Neronha said in the press release. He added that "for a company that engages so many Rhode Islanders and Americans, maintaining high standards for consumer safety should be of the utmost importance."

The numbers in the complaint

The state leans heavily on figures that first surfaced in reporting by Reuters in 2025. According to the attorney general's release, Reuters reported that about 10% of Meta's annual ad revenue, roughly $16 billion, came from scam ads or ads for restricted goods.

The complaint also alleges that Meta showed users an estimated 15 billion scam like ads every day, and that ads Meta itself labeled as carrying "higher legal risk" generated about $7 billion a year. These are allegations, not court findings, and Meta disputes the state's framing.

What Rhode Island wants

The state is asking the court for a lot. According to the release, it wants:

1. A declaratory judgment that Meta broke the Deceptive Trade Practices Act.
2. Injunctive relief to force changes in how Meta handles scam ads.
3. Restitution for affected consumers.
4. Civil penalties for each violation.
5. Disgorgement of money Meta allegedly gained unfairly.
6. A receiver, auditor or monitor to oversee compliance.

That last request is unusual. A court appointed monitor would give an outside party a direct view into how Meta reviews and removes ads.

Meta's response

Meta pushed back hard. Spokesperson Andy Stone told Reuters, as reported by Engadget, that the company "has removed more than 159 million scam ads." He also said that "the attorney general refused to engage with us on ways we protect Rhode Islanders from scams, and has instead hired an out-of-state private law firm to concoct a lawsuit."

Engadget notes that Meta has taken some public steps against fraud. It has shut down some scam operations, sued some advertisers and, earlier this year, added protections that flag suspicious messages. Meta's position is that it fights scams aggressively and that the lawsuit ignores that work.

Why the Rhode Island Meta lawsuit matters

It opens a new legal front

Rhode Island is the first state to sue on these claims, but it is not alone. According to Engadget, the Consumer Federation of America sued Meta over scam ads in April, and Santa Clara County in California filed a similar suit in May. A state attorney general brings more weight, though, because states can seek civil penalties and court ordered changes that private groups often cannot.

If Rhode Island makes progress, other states could follow. That pattern played out before, when a handful of state cases over youth safety grew into a nationwide push. We saw a similar wave this month when at least eight states sued OpenAI over ChatGPT and child safety.

It adds to a rough stretch for Meta

The suit comes on top of other legal trouble. Earlier this week, a judge ordered Meta to pay $25 billion in a New Mexico privacy case. And according to the Rhode Island release, the state is already set to receive at least $49.4 million, and up to $64.5 million, from an August 2026 multistate settlement with Meta worth up to $17.1 billion. The scam ad case is separate from that deal.

Meta has also faced scrutiny over its newer AI products, including the recent exposure of shared Muse chats. Taken together, the cases show regulators are testing whether existing consumer protection laws can rein in how big platforms make money.

Who is affected

The people at the center of this case are ordinary users, especially older adults. Fake investment pitches, celebrity impersonation ads and bogus government benefit offers tend to hit seniors hardest, which is why the complaint focuses on targeting.

Advertisers are affected too. Legitimate businesses compete for the same ad space as scammers, and a flood of fraudulent ads can erode trust in every ad on the platform.

How to protect yourself from scam ads

While the case plays out, you can lower your own risk:

1. Be skeptical of investment ads. Any ad promising guaranteed returns, especially in crypto, deserves extra caution.
2. Check celebrity endorsements. Scammers often use famous faces without permission. Search the offer on a news site before clicking.
3. Never share Medicare or Social Security numbers through an ad. Government agencies do not recruit people through social media promotions.
4. Report the ad. Use the menu on any Facebook or Instagram ad to report it as a scam.
5. Talk to older relatives. A five minute conversation about common scams can prevent a costly mistake.

Scams also travel through messaging apps, so it helps to know the latest features, like the new WhatsApp guest calls that let people join without an account.

What to watch next

Meta will file its response in Providence County Superior Court, and it may try to move the case or have it dismissed. Watch for whether other attorneys general join or file their own suits, and whether the court considers the state's request for an outside monitor. For more coverage of platforms and online safety, visit our tech section.

Frequently asked questions

Why is Rhode Island suing Meta?

The state alleges Meta helped create and spread scam ads on Facebook, Instagram and WhatsApp, targeted vulnerable users, and profited from the fraud, in violation of Rhode Island's Deceptive Trade Practices Act.

How much money does the state say Meta makes from scam ads?

Citing a 2025 Reuters report, the attorney general's office says about 10% of Meta's annual ad revenue, roughly $16 billion, came from scam or restricted goods ads.

What does Meta say?

Spokesperson Andy Stone told Reuters that Meta has removed more than 159 million scam ads and accused the attorney general of refusing to work with the company.

Is this connected to the $17.1 billion Meta settlement?

No. That August 2026 multistate settlement is separate. Rhode Island will receive between $49.4 million and $64.5 million from it, according to the state.