Rhode Island Sues Meta, Alleging It Profited From Scam Ads on Facebook and Instagram

Published Nov. 6, 2026. Case status is current as of that date.

You scroll past an ad for a "guaranteed" investment, a celebrity-endorsed product or a benefit you supposedly qualify for. Some such ads are scams. On Oct. 22, 2026, Rhode Island Attorney General Peter F. Neronha sued Meta Platforms, the owner of Facebook and Instagram, over what the state alleges is the company's role in them [1].

Important: This is a civil lawsuit, and everything below is the state's allegation. Meta has not been found liable. The attorney general's release describes "alleged" conduct throughout [1].

What the state alleges

According to the Rhode Island Attorney General's Office [1]:

• Meta "continues these practices because they generate substantial revenue, despite knowing that scam ads cause significant financial harm to vulnerable consumers."
• It "helped create, refine, and distribute advertisements that promoted fraudulent schemes, deceptive offers, impersonation scams, fake investment opportunities, false Medicare and Social Security benefit offers, ineffective or dangerous health supplements or treatments, and other unlawful or deceptive conduct."
• It allegedly provided "design assistance, audience-selection tools, targeting capabilities, optimization systems, delivery services, analytics, and related services" that let advertisers repeatedly reach people likely to respond to fraud ads, including seniors.
• Meta allegedly showed users an estimated 15 billion ads with clear signs of fraud every day, and in some cases charged companies a premium to display ads instead of removing them.
• The office also cites 2025 Reuters reporting that about 10% of Meta's annual ad revenue, $16 billion, came from ads for scams or restricted goods. That is the office's characterization; we have not reviewed the Reuters article.

The office says Rhode Island is the first state to sue Meta over this alleged behavior, following a similar suit by Santa Clara County, California.

"As alleged, Meta knowingly exposed vulnerable users to fraud and scams, and made enormous profits in doing so," Neronha said [1].

What the state wants, and Meta's response

The complaint, under Rhode Island's Deceptive Trade Practices Act, seeks a declaration that Meta violated the law, an injunction, restitution for affected Rhode Island consumers, civil penalties for each violation, disgorgement of profits and a court-appointed receiver, auditor or monitor [1].

Class Action Pulse reports the case is State of Rhode Island v. Meta Platforms, Inc. and Instagram, LLC, No. PC-2026-05842, in Providence County Superior Court. It also reports that Meta said it has removed more than 159 million scam ads and accused the attorney general of hiring an out-of-state law firm to "concoct a lawsuit," and that this is a state enforcement action, not a class action, with no claim process [2]. We have not seen a statement from Meta directly. A state-law roundup also summarizes the suit [3].

Why it matters to you

The allegations describe scams people meet in their feeds: impersonation, fake investments and false benefit offers aimed at older adults. Whatever the court decides, an ad's appearance on a major platform is not proof that it is legitimate.

Red flags in ads

These are general warning signs, not claims about any advertiser.

• Guaranteed returns or celebrity "endorsements" of a trading platform or crypto program.
• Ads saying you qualify for Medicare, Social Security or other benefits if you click.
• An ad that imitates a government agency, bank or known brand but sends you to a different website.
• Miracle supplements with dramatic before-and-after claims.
• Pressure to move to a private chat or app.

What to do

• Do not click or send money. Look up the company yourself and check with the agency or business it claims to represent.
• Report the ad to the platform, and report fraud at ReportFraud.ftc.gov.
• If you lost money, contact your bank or card issuer immediately and file a report at ic3.gov.
• Check on older relatives, whom the state's release highlights as a targeted group.

Case status (as of Nov. 6, 2026)

Party	Court	Status	Source
Meta Platforms, Inc. and Instagram, LLC	R.I. Superior Court, Providence County, PC-2026-05842 (per Class Action Pulse)	Civil complaint filed Oct. 22, 2026; allegations only; no ruling reported	[1], [2]

No court has found Meta liable. Statuses can change.

Sources

1. Rhode Island Attorney General's Office, "Attorney General Neronha sues Meta for fraudulent advertisements," Oct. 22, 2026. https://riag.ri.gov/press-releases/attorney-general-neronha-sues-meta-fraudulent-advertisements
2. Class Action Pulse, "Rhode Island sues Meta over scam ads on Facebook and Instagram," Oct. 2026. https://www.classactionpulse.com/news/rhode-island-sues-meta-scam-ads-facebook-instagram
3. State AG Blog, "State AG News: Deceptive Practices, Pricing, Fintech (October 22-28, 2026)," Nov. 3, 2026. https://www.stateagblog.com/2026/11/state-ag-news-data-privacy-antitrust-ai-consumer-protection-october-22-28-2026/

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