Rhode Island Attorney General Files First State Lawsuit Against Meta Over Scam Advertising

Rhode Island's attorney general announced Wednesday that the state has filed a lawsuit against Meta Platforms Inc., accusing the social‑media giant of facilitating deceptive advertising that targets consumers with fraudulent schemes. The legal action marks the first time a U.S. state has sued the company on these specific grounds.

The complaint alleges that Meta’s ad‑delivery system allows scammers to promote false promises—ranging from bogus investment opportunities to counterfeit health products—without adequate oversight. According to the filing, the company's algorithms and review processes failed to identify or remove these illicit ads, resulting in financial losses for Rhode Island residents.

State officials highlighted a broader surge in online scams over the past few years, noting that the pandemic accelerated the shift to digital commerce and, consequently, the prevalence of fraudulent marketing. Federal regulators, including the Federal Trade Commission, have repeatedly warned platforms about the need for stricter ad verification, but the Rhode Island suit claims Meta has fallen short of those expectations.

In the lawsuit, the attorney general seeks a court injunction compelling Meta to overhaul its ad‑screening procedures, impose monetary penalties for past violations, and provide restitution to victims identified in the case. The filing also requests that Meta disclose the extent of scam‑related advertising on its platforms and cooperate with state investigators.

Meta has not yet responded publicly to the filing. Legal analysts say the case could set a precedent for other states contemplating similar actions, potentially prompting industry‑wide changes to how social networks police advertising content. The matter is slated for a preliminary hearing later this month, after which both sides will have the opportunity to present additional evidence and arguments.