April 22, 2026 Meta Platforms is facing a class action lawsuit in Washington, D.C., alleging the company knowingly profited from scam advertising on Facebook while misleading users about its efforts to combat fraud. The complaint claims internal projections tied billions of dollars in revenue to high-risk ads, raising questions about whether enforcement practices conflicted with business incentives.
The lawsuit, filed by Tech Justice Law and Tycko & Zavareei LLP on behalf of the Consumer Federation of America and Washington, D.C. consumers, alleges that Meta “systematically deceived” users under the D.C. Consumer Protection Procedures Act. “Meta has, as a matter of company policy, deliberately profited from rampant, inexcusable harm to users on its platforms,” said Sarah Kay Wiley, attorney and managing director at Tech Justice Law.
According to the complaint, internal Meta documents projected that roughly 10 per cent of the company’s annual revenue in 2024 – about $16 billion – would come from advertising tied to scams or banned goods. The filing further alleges that users are exposed to an estimated 15 billion “higher risk” scam advertisements daily across Meta’s platforms.
The suit claims Meta did not simply fail to prevent these ads but instead allowed them to persist as part of its revenue model. It alleges that high-risk advertisers were charged premium rates, increasing profits while maintaining access to users. Internal policies cited in the complaint reportedly limited enforcement actions that would reduce revenue by more than 0.15 per cent, while 96 per cent of valid user reports of fraud were allegedly ignored or rejected each week.
The complaint also alleges that Meta manipulated its public Ad Library database to present cleaner results to regulators, describing this as part of a broader “global playbook” to manage scrutiny. Plaintiffs are seeking damages, restitution of alleged profits, and an injunction to prevent further misleading practices.
The case adds to ongoing scrutiny of how large platforms balance content moderation with advertising revenue. For tech operators, it highlights the operational tension between enforcing trust and safety at scale and maintaining growth in ad-driven business models.
These claims remain allegations and have not been proven in court. We will be seeking comments from Meta and will update this story when and if they are received.
