U.S. senators call for probe of scam ads on Facebook and Instagram – The Hindu

FILE PHOTO: U.S. senators have asked FTC and the Securities and Exchange Commission to probe Meta about its revenue from ads on Facebook and Instagram that promote scams and banned goods. | Photo Credit: Reuters U.S. senators Josh Hawley and Richard Blumenthal have asked the heads of the Federal Trade Commission and the Securities and Exchange Commission to probe Meta Platforms, following a Reuters report about the social media giant’s revenue from ads on Facebook and Instagram that promote scams and banned goods. “The FTC and SEC should immediately open investigations and, if the reporting is accurate, pursue vigorous enforcement action where appropriate” to force Meta to disgorge profits, pay penalties and agree to cease running such advertisements, Hawley and Blumenthal wrote in a letter to the federal agencies. Earlier this month, Reuters reported that internal documents from late 2024 stated that that year – about $16 billion – from illicit advertising. One document noted Meta earns $3.5 billion in revenue from “higher risk” scam ads every six months. Other documents stated that Meta’s anti-fraud rules didn’t appear to apply to many ads that regulators and the company’s own staff believed “violated the spirit” of its rules against scam advertising.
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