U.S. senators Josh Hawley and Richard Blumenthal have called on the Federal Trade Commission (FTC) and the Securities and Exchange Commission (SEC) to investigate Meta Platforms. This request follows a report alleging that Meta is profiting significantly from advertisements promoting scams and prohibited goods on its platforms, Facebook and Instagram.
In a letter to these agencies, the senators urged immediate action. They suggested that if the report is accurate, Meta should face strong penalties and be compelled to stop such advertisements outright.
Recent documents revealed that Meta projected about 10% of its revenue—around $16 billion last year—would come from illicit advertising. These documents indicated that the company earned approximately $3.5 billion biannually from “higher risk” scam ads. Additionally, there were concerns that Meta’s guidelines for preventing fraud were not effectively applied, allowing many misleading ads to circulate.
In response, Meta claimed that it has cut down user reports of scams by 58% over the past eighteen months. A spokesperson for the company dismissed the senators’ claims as exaggerated, insisting that Meta is dedicated to fighting fraud because legitimate advertisers and users alike do not want such content.
Both senators expressed doubts about Meta’s commitment to tackling these issues. They noted that a brief look at Meta’s Ad Library showed numerous advertisements for fraudulent gambling, payment scams, and fake federal benefits offers.
The senators highlighted a troubling statistic: the FTC estimated that Americans lost about $158.3 billion to scams last year, suggesting Meta may have played a role in over $50 billion of that loss. They criticized Meta for allowing scams to flourish on its platforms while reducing its safety staff.
Hawley and Blumenthal were particularly concerned about misleading ads that impersonate government entities or public figures. They cited an example of a fraudulent ad claiming that President Donald Trump was offering money to food assistance recipients.
Despite warnings about fake ads impersonating politicians, the senators stated that these scams continue to run on Meta’s platforms, benefiting cybercrime groups from various countries.
As investigations move forward, many are hopeful that this scrutiny will prompt Meta to take more responsibility for the content it allows on its platforms, ensuring a safer experience for all users.
