A bipartisan pair of U.S. senators is urging federal regulators to launch a formal investigation into Meta Platforms, Inc., following reports that the social media giant derives billions in revenue from advertisements promoting scams and illegal services.
In a letter to the Federal Trade Commission (FTC) and the Securities and Exchange Commission (SEC), Senators Josh Hawley (R-MO) and Richard Blumenthal (D-CT) called for immediate action. They argue that if recent media reports are accurate, the agencies should pursue enforcement to compel Meta to surrender profits, pay significant penalties, and halt the dissemination of such advertisements.
The senators’ demand follows a report detailing internal company documents. Those records allegedly projected that a substantial portion of Meta’s annual revenue—estimated at roughly $16 billion—would come from illicit advertising. Further documents suggested the company earns approximately $3.5 billion every six months from what it internally categorizes as “higher risk” scam ads. The report also indicated that Meta’s own anti-fraud policies may not be effectively applied to numerous advertisements that regulators and internal staff believe clearly violate the company’s stated rules.
In a statement, a spokesperson for Meta dismissed the senators’ allegations as “exaggerated and wrong,” asserting the company aggressively fights fraud and scams. The spokesperson also cited an 58% reduction in user scam reports over the past year and a half.
Hawley and Blumenthal remain unconvinced. They point to Meta’s public Ad Library, a database of ads run on its platforms, which they claim is rife with identifiable promotions for illegal gambling, cryptocurrency scams, payment fraud, AI-generated explicit content, and counterfeit government benefit offers.
The lawmakers cited an estimate that Meta’s platforms are involved in up to a third of all scams in the United States. They linked this to FTC data showing Americans lost over $158 billion to fraud last year. The senators accused Meta of allowing scams to proliferate while drastically reducing its trust and safety teams and redirecting resources toward generative artificial intelligence projects.
A particular area of concern highlighted in the letter is the prevalence of deceptive ads impersonating government agencies or political figures. One cited example falsely claimed former President Donald Trump was offering cash grants to food assistance recipients. The senators noted that such fraudulent content often benefits cybercrime organizations based overseas.
The letter concludes with a forceful request for the FTC and SEC to open investigations and take decisive enforcement measures.