U.S. senators are intensifying scrutiny on Meta after a surge in scam ads circulating on Facebook and Instagram, urging federal authorities to step in. The lawmakers argue that misleading advertisements—often posing as legitimate financial opportunities, celebrity endorsements, or official companies—have reached unprecedented levels, resulting in substantial financial losses for everyday users.
Lawmakers Warn of Widespread Consumer Harm
According to the senators, thousands of Americans have been deceived by fraudulent investment schemes and impersonation ads that look convincingly authentic. Many victims report losing savings after engaging with ads promising high returns or linking to fake service portals. Lawmakers say Meta’s current ad-review system is “inadequate and opaque,” allowing scammers to exploit loopholes and reach millions through paid promotions.
Demand for Federal Investigation and Accountability
The senators have called on federal regulators—particularly the Federal Trade Commission (FTC)—to launch a formal investigation into Meta’s handling of paid advertising. Their letter emphasizes that algorithm-driven advertising, combined with Meta’s scale, makes scam content especially dangerous. They argue that Meta profits from every ad served, giving the company limited incentive to aggressively filter fraudulent campaigns.
Concerns Over Meta’s Ad-Screening Policies
Critics highlight that Meta’s automated systems often fail to detect fraudulent ads, while human review teams are overwhelmed by volume. In some cases, scam ads reportedly remained active even after users filed complaints. Lawmakers say Meta must be held responsible for ensuring that paid content does not mislead or defraud consumers.
Push for Stronger Transparency and Oversight
The senators are urging regulators to explore stricter rules for digital advertising, including mandatory disclosure of ad buyers, real-time removal of harmful content, and clearer reporting mechanisms for users. They also want Meta to publicly reveal how it evaluates high-risk ads and what safeguards exist to prevent repeat offenders from purchasing new campaigns.
Meta Responds but Faces Mounting Criticism
A Meta spokesperson said the company is investing heavily in fraud-prevention tools, expanding verification processes, and partnering with law enforcement. However, lawmakers argue these efforts remain insufficient, noting that scam-related complaints tied to Meta’s platforms continue to climb.
What Comes Next for Digital Platforms
If regulators move forward with a probe, it could set a precedent for broader oversight of online advertising across major tech platforms. The debate is expected to intensify as more victims come forward and lawmakers push for clear accountability in the digital ad ecosystem.