Two U.S. senators have formally requested federal regulators to investigate Meta Platforms Inc. regarding advertising revenue generated from fraudulent schemes and prohibited products on its social media networks.
In a joint letter to the Federal Trade Commission and Securities and Exchange Commission, Senators Josh Hawley and Richard Blumenthal called for immediate investigations into what they characterize as widespread deceptive advertising practices across Facebook and Instagram. The lawmakers urged regulators to pursue enforcement actions that could require Meta to surrender profits, pay significant penalties, and implement measures to prevent future violations.
The congressional action follows recent reports based on internal company documents indicating Meta projected approximately 10% of its annual revenue—estimated at $16 billion—would come from questionable advertising sources. Additional documentation suggested the company earns billions every six months from what internal classifications term “higher risk” advertisements, while many ads that potentially violate the company’s own anti-fraud standards reportedly escape enforcement.
Company representatives pushed back against the allegations, stating they’ve reduced user scam reports by more than half over the past 18 months. A Meta spokesperson characterized the senators’ claims as “exaggerated and wrong,” emphasizing the company’s commitment to combating fraudulent content.
The senators remain unconvinced by these assurances, pointing to Meta’s publicly accessible advertising database which they claim clearly displays promotions for illegal gambling operations, cryptocurrency fraud, AI-generated explicit content services, and counterfeit government benefit offers. They cited estimates suggesting Meta’s platforms facilitate approximately one-third of all scams affecting Americans, contributing to billions in annual consumer losses.
Particular concern was expressed about advertisements featuring fabricated political endorsements and AI-manipulated content impersonating public figures. The lawmakers noted that fraudulent advertisements often originate from organized cybercrime networks operating internationally.
The senators’ letter argues that scam proliferation has accelerated as Meta reduced its safety operations staff while increasing investment in artificial intelligence development projects.
