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Facebook scams
(Photo Credit: tanuha2001/Shutterstock)

Update:

  • Meta Platforms has been let off the hook of allegations it is responsible for money lost by its users to third-party scam ads posted on its Facebook platform. 
  • The judge overseeing the case determined Facebook users had not established that Meta had “materially contributed” to the illegality of the scam ads in question.
  • Facebook users have been given the option to amend the class action lawsuit.
  • Facebook users had claimed in their class action lawsuit that the company had a policy of “actively soliciting, encouraging and assisting scammers.” 
  • The judge overseeing the case ruled, however, that the users did not claim Meta had directly participated in the purchases they made on the websites they landed on after clicking on the alleged scam ads.

Facebook Scams Class Action Lawsuit Overview: 

  • Who: A pair of Californians want to represent consumers who have been victims of Facebook scams. 
  • Why: Facebook has long profited from users’ private information, says the pair’s class action lawsuit, and it is time the tech giant took responsibility and paid users who fall victim to scams on the social media site.
  • Where: The class action lawsuit was filed in California federal court.

(08/12/2022)

Facebook scams target millions and a pair of Californians want the tech giant to start paying victims who fall for the deceptive ads, according to a class action lawsuit filed Wednesday.

Lead plaintiffs Christopher Calise and Anastasia Groschen want to represent consumers who have fallen for deceptive ads and Facebook scams. They accuse the social media giant of “actively soliciting, encouraging, and assisting scammers” using Facebook to defraud users and want the company to pay.  

Calise and Groschen point out that Facebook collects reams of data from each user — for free. 

User information has “enormous financial value,” say the plaintiffs, and Facebook uses the data to target users with ads, including deceptive and misleading ads from scammers.  

Facebook Scams Bring Revenue to Social Media Giant

The tech company is well aware that its platform, as well as its Instagram sites are rife with Facebook scams, including bait-and-switch and other schemes intended to defraud users, say the plaintiffs. However, instead of putting a stop to this behavior or even turning a blind eye, Facebook has encouraged scammers to use the site, allege the plaintiffs.  

“Facebook actively solicits, encourages, and assists scammers in numerous ways,” states the class action lawsuit.  

On the revenue side, the company encourages sales teams to sell Facebook ads to known scammers who repeatedly violate its ad policies, claim the plaintiffs.  

Further, Facebook fails to properly police and protect users from scams, allege the plaintiffs. They accuse the company of ignoring hacked accounts, as long as the scammer is paying the tech company for the ad, which is, in reality, a Facebook scam. 

Repeated violations of the social media site’s advertising policies by Facebook scammers are ignored as well, claims the class action lawsuit.  

“Cracking down on scammers would jeopardize the billions of dollars per year in ad revenue that Facebook collects from scammers,” states the lawsuit. 

“Therefore, even as Facebook’s public relations team touts the closing of certain accounts and lawsuits targeting a few scammers, Facebook remains economically motivated to continue soliciting, encouraging, and assisting scammers at the expense of its users.” 

The plaintiffs say that a court order forcing the company to take more responsibility for Facebook scams and deceptive advertising is necessary. They want the company to incentivize the protection of users, rather than the sale of ads and also extend the platform’s Purchase Protection program to victims of Facebook scams. They also want the social media giant to disgorge the enormous amount of profit it has made by selling user information to advertisers. 

Facebook faces a litany of complaints and legal action concerning the collection of user data and its ad policies. This summer, the tech giant fought a class action lawsuit contending Facebook misrepresented its data privacy practices to get more users and has monopolized the social media market through acquisitions. 

Online advertisers have also hit Facebook with a class action lawsuit claiming the company misrepresents the supposed reach of ads on the social media site. 

Have you fallen for Facebook scams? We want to hear about it! Tell us what happened in the comment section below.  

The plaintiffs are represented by Adam M. Apton, Mark S. Reich, and Courtney E. Maccarone of Levi & Korsinsky, LLP. 

The Facebook Scams Class Action Lawsuit is Calise, et al. v. Facebook, Inc., Case No. 3:21-cv-06186 in the U.S. District Court for the Northern District of California.


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962 thoughts onMeta Defeats Facebook Scam Ad Class Action

  1. Smita Chandra says:

    Facebook running ads with names of Cathie Woods, Bill Ackman, investment firms which then lead to whatsapp group touting investment teaching, lure clients to buy stocks which are then manipulated (pump and dump) causing millions in losses. FB refuses to stop these ads.

  2. Bill Schackmann says:

    Currently being contacted claiming to be someone from high school who I haven’t talked to in over 40 years. The ruse is that if I provide information to an “agent” I will get free grant money from the government. The agent proceeded to ask me for FULL NAME:

    FULL HOME ADDRESS……

    TEXT NUMBER:

    DATE OF BIRTH:

    OWN A HOUSE OR RENT APT: ……

    MONTHLY INCOME;

    YOUR AGE::

    CASH OR CHECK:

    YOUR PICTURES…

    but won’t explain exactly where the money is coming from or why I am even eligible for the money. I have tried to report the scam, but get this message from the Facebook site “We’re sorry, there’s a technical problem with this feature. We’re working on getting it fixed.” anytime I try to report the scam. I have sent emails to Facebook help , but no answer and it is quite answer they don’t care. Sad part is, as bad as the scammer is with his bs some one is going to get scammed and those rich, smug sob’s at Facebook don’t care.

  3. Steven says:

    Just to make sure I found it again – While on a new tab shopping then switch over to the Facebook tab on the same browser and find the same product being advertised same company and same product on Facebook too, and on other day it did it again with different companies and different products again the same way each time – Facebook on one tab and shopping on another tab and switching between tabs to find what I shopped for and see on Facebook.

  4. Steven says:

    I have seen Facebook show what I was shopping for, on a new tab, of the same browser I was using Facebook on several times, for example the same car battery on the same browser and new tab and kept showing me for several days not just once it was several products with same browser I was using Facebook on and new tab, each time it was a different product yet same product I was looking at on the new tab, they follow what you write while in Facebook and critique what is written, and when something nice is written about some one it will be twisted into hate and harassment, if you use the spell checker to help create a timeline post it will make errors and erase everything, and try to add pictures and words while writing being the subject.

  5. Jamie Alden says:

    I have been scammed 3 different times from Facebook ads. This last time I thought I researched what I was buying pretty good and was still deceived. The ad was for HeyDude shoes. It even looked like I was ordering from their website. I received a tracking # and everything. It wasn’t until the package was delivered to the wrong state that I learned it was a scam. HeyDude had no record of my order. I have lost hundreds of dollars because of these scams and I believe since they were advertised on Facebook that Facebook should be held accountable.

  6. Cara Salotti says:

    I was scammed 3 times by the fake Facebook ads. Target had the ad where you find the apple and you could win a gift card. I won the gift card and never received it. The person used the information and got into my Target account and stole my credit card to make purchases. Had to change my credit card. The other two scams were JCPenny and JCP. My orders never arrived. It was so convincing that these were outlet stores. Especially JCPenny.

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