Published on: April 25, 2026, 10:02h.

Updated on: April 25, 2026, 10:02h.

• Meta is facing allegations for permitting advertisements linked to illicit gambling across its platforms
• The owner of Facebook asserts its commitment to blocking ads related to fraudulent activities on social media

Meta Platforms, the parent company of Facebook and Instagram, is embroiled in a lawsuit filed in the Superior Court of the District of Columbia. The lawsuit charges the tech titan with misleading consumers by permitting ads from fraudulent enterprises, including those associated with illegal gambling.

The Consumer Federation of America (CFA) states in the civil motion that Meta’s social media services are plagued by fraudulent content. The suit claims that Meta has misrepresented its efforts to eliminate ads linked to scams and deceptive businesses.

According to the CFA, platforms within Meta’s ecosystem, such as Facebook, Instagram, WhatsApp, and Threads, knowingly permit scam advertising.

Instead of barring advertisers that Meta categorized as high-risk, the company opted to collect higher fees from these advertisers, enhancing their earnings by granting risky advertisers access to its audience,” read the CFA’s statement concerning the lawsuit.

In November of last year, Reuters acquired an internal Meta document, dated 2024, that indicated the company projected about 10% of its revenue would be derived from scam ads linked to illegal gambling, sale of forbidden medical products, pornography, and other supposedly restricted content.

“Significant investments are required to mitigate increasing harm,” allegedly stated in the internal Meta document.

Widespread Illegal Gambling

The CFA’s accusations allege that Meta facilitates the promotion of illegal gambling operations on its social media and messaging platforms. By luring users into gambling through those illegal sites and applications, the CFA contends that Meta is complicit and acts as a “keystone” in the “global fraud economy.”

As Americans continue to lose substantial sums to online scams, Meta consistently opts for profit over user safety,” remarked Ben Winters, director of AI and data privacy at the CFA.

“Congress has been ineffective in holding Meta accountable, the Trump Administration has shifted to become a Big Tech lobbying entity, and State Attorneys General are overwhelmed. Today, the CFA is taking direct action to safeguard DC residents and will persist in advocating for the protection of consumers from the dire effects of online scams,” Winters further stated.

According to Meta’s advertising policies, specifically its Advertising Standards on Fraud, Scams, and Deceptive Practices, ads that attempt to “scam or defraud users through … gambling fraud and scams” are prohibited.

Proposed Class-Action Suit

The CFA is proposing a class-action suit aimed at Meta users in DC and is seeking a jury trial. This lawsuit aims to recover financial losses incurred by consumers, as well as the illicit earnings generated by Meta through scam advertisement revenue. Additionally, it seeks an injunction to prevent Meta from violating the DC Consumer Protection Procedures Act any further.

As of now, Meta has not issued a response to the CFA’s legal claims.