Meta developed a "global playbook" to manage regulatory pressure over scam ads on Facebook and Instagram, using its Ad Library to make fraudulent content "untraceable" for regulators rather than implementing universal advertiser verification, according to internal documents reviewed by Reuters.
The company declined to spend an estimated $2 billion on universal verification—which could reduce scam ads by up to 29%—because it might cost up to 4.8% of revenue, instead adopting a "reactive only" approach that redirects blocked scam ads from regulated markets to unregulated ones.
The U.S. Virgin Islands filed a lawsuit against Meta on December 30 alleging the company "knowingly and intentionally" exposed users to fraud while profiting from scams, as U.S. senators called for federal investigation and the European Commission questioned Meta's compliance.
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