Santa Clara County filed a lawsuit against Meta Platforms in California Superior Court on Monday. The county alleges Meta profited from scam advertisements hosted on Facebook and Instagram.
The legal action claims Meta violated state laws regarding false advertising and unfair business practices. The suit specifically targets Meta's oversight of ad content and financial gains from fraudulent promotions.
A ruling in favor of the county could establish a legal precedent for platform responsibility regarding hosted advertisements. Meta faces potential financial penalties and increased regulatory scrutiny as a result of the challenge.