U.S. Senators Call for Meta Review Amid Scam Ad Allegations

U.S. senators are urging regulators to investigate Meta Platforms following a Reuters report alleging that nearly 10% of the company's annual revenue—approximately $16 billion—comes from ads promoting scams or banned goods. Internal documents from late 2024 also suggested Meta earns $3.5 billion every six months from higher-risk ads that may mislead users. Meta disputes these claims, citing a 58% decline in scam reports over the past 18 months and emphasizing its efforts to combat fraudulent content.

Despite Meta's pushback, senators argue the company has reduced safety staffing while scam ads persist on its platforms. Public ad libraries still show clear evidence of deceptive promotions. Shares of Meta ROSE 0.87% to $594.25 on Friday, reflecting muted market reaction to the controversy.

The regulatory scrutiny adds to Meta's existing challenges, though the senators' letter does not yet constitute a formal case. Investors are weighing the potential long-term implications for the social media giant's ad-driven business model.