Neronha Sues Meta Over Rhode Island Scam Ads

Attorney General Peter F. Neronha filed a lawsuit in Providence County Superior Court on Thursday, accusing Meta of generating revenue through scam advertisements on Facebook and Instagram. The state argues that Rhode Island is the first state to bring a legal action against the social media giant for this specific conduct under the Deceptive Trade Practices Act.

The complaint alleges that Meta did not merely fail to remove bad ads but actively helped create, refine, and distribute them. Neronha’s office claims the company targeted senior citizens using account-holder data while simultaneously publicizing sophisticated anti-fraud efforts. The suit highlights a gap between Meta’s public statements and its internal practices, specifically regarding the use of data to identify users most likely to engage with deceptive offers for Medicare, Social Security, and fake investments.

Internal documents obtained by Reuters in November 2025 form the backbone of the state’s financial arguments. One document from December 2024 estimated that Meta displayed roughly 15 billion higher-risk scam ads to users daily. Another projection suggested that approximately 10% of Meta’s total 2024 annual revenue, or about $16 billion, came from running ads for scams and banned goods. A separate late-2024 estimate placed annualized revenue from the higher-risk category alone at $7 billion. The complaint cites a study by the Center for Countering Digital Hate that identified nearly 94,000 scam ads on the platforms.

Neronha is seeking a declaration that Meta violated state consumer protection laws, an injunction to change future operations, and civil penalties for each violation. The state also requests restitution for affected Rhode Island consumers and disgorgement of funds it claims Meta was unjustly enriched by. Additionally, the office is asking the court to appoint a receiver or monitor to oversee the company’s compliance. This request aims to place an outside overseer on a corporation that, according to the state, failed to police itself adequately.

Meta disputes the lawsuit, calling it unfounded. The company stated it removed more than 159 million scam ads in the past year and has introduced new anti-fraud tools. Meta also noted that Neronha’s office hired an out-of-state private firm and declined to engage directly with the company. The new suit is distinct from the August settlement involving up to $17.1 billion, which addressed claims that Meta designed its platforms to addict young users.

Other governments have also pursued Meta for similar reasons. Santa Clara County in California filed a suit in May, and the U.S. Virgin Islands attorney general sued last year. In a separate consumer protection case, a New Mexico judge ordered Meta to pay $25 billion on October 21. Neronha said his office worked with the General Assembly in 2021 to restore the attorney general’s authority to enforce the Deceptive Trade Practices Act, which was previously used against local businesses like a residential solar company.

Rhode Islanders who believe they lost money to a scam ad can file a complaint with the attorney general’s Consumer Protection Unit. Residents can submit complaints online or by calling 401-274-4400, prompt 1. The office is located at 150 South Main Street in Providence. An investigator will contact complainants once their cases are assigned.