Attorney General William Tong led a bipartisan coalition of 42 attorneys general in urging Meta Platforms to protect users from fraudulent investment ads on Facebook that facilitate pump-and-dump schemes, causing significant financial losses. The coalition calls for enhanced ad review processes, including human review for investment ads, and suggests ceasing investment ads if scams cannot be curbed.
In-house legal teams should review their advertising and platform use agreements to ensure that the platform provider has robust ad review mechanisms, including pre-screening for investment-related ads and human oversight. Contracts should include clauses requiring prompt removal of fraudulent ads, liability for scams, and regular reporting on ad compliance. Additionally, consider provisions for advertiser verification and cooperation with law enforcement.
Entity
Meta Platforms, Inc.
Also known as: Meta
Industry
Social MediaOfficial Press Release
https://portal.ct.gov/ag/press-releases/2025-press-releases/attorney-general-tong-leads-bipartisan-coalition-urging-meta-to-protect-users
letter to meta re scam investments final
https://portal.ct.gov/-/media/ag/press_releases/2025/letter-to-meta-re-scam-investments-_final.pdf
Connecticut Attorney General Enforcement Page
https://portal.ct.gov/AG/Privacy/Privacy-Resources
"Meta Platforms, Inc. (Meta)"
"The fraudulent ads are luring users into pump-and-dump schemes that have led to thousands of people losing hundreds of millions of dollars."
$17.1B
Attorney General James and a bipartisan coalition of 50 other attorneys general secured a landmark settlement with Meta Platforms, Inc. (Meta) worth up to $17.1 billion to address the company's harmful and addictive features targeting minors on Facebook and Instagram. The settlement requires Meta to implement significant changes, including age verification, time limits for minors, restrictions on notifications, and options to opt out of algorithmic feeds, along with monetary payments to states for mental health and education programs.
$17.0B
Meta Platforms, Inc. agreed to a landmark $17 billion multistate settlement resolving claims that it intentionally designed addictive features on Facebook and Instagram that harmed youth mental health, and misled the public about platform safety. Virginia will receive a guaranteed $353 million, and Meta must implement extensive child-safety measures including daily time limits, age verification, and content restrictions.
$1.0B
Texas Attorney General Ken Paxton secured a historic settlement with Meta Platforms, Inc. requiring Meta to pay over $1 billion and implement significant new safeguards to protect children online. The settlement includes stricter age-assurance measures, a daily two-hour limit for teen users, default disabling of notifications during school hours, hidden likes/reactions, and a nighttime access mode restricting features for children.
A bipartisan coalition of 33 state attorneys general, led by Minnesota AG Keith Ellison, began trial against Meta Platforms, Inc., alleging the company knowingly designed and deployed harmful features on Facebook and Instagram that drive children and teens to use the platforms compulsively, while falsely assuring parents and the public that its platforms were safe for young users. The states also allege Meta illegally collected personal information from children under 13 without parental consent, violating COPPA. The trial opened before Judge Yvonne Gonzalez Rogers in the U.S. District Court for the Northern District of California, with the states seeking monetary penalties and injunctive relief.
New York Attorney General Letitia James issued a statement marking the first day of trial in a multistate lawsuit against Meta, alleging the company knowingly designed addictive features on Facebook and Instagram that harm children's mental health. The coalition alleges Meta illegally collected personal information from children under 13 without parental consent, violating COPPA, and seeks monetary penalties, restitution, and an injunction against deceptive practices.
A bipartisan coalition of state attorneys general led by New Jersey, California, Colorado, and Kentucky is taking Meta Platforms, Inc. to trial, alleging that Meta designed addictive features on Instagram and Facebook that harm minors' mental health, illegally collected data from children under 13 without the required protections under COPPA, and misled users about platform safety. Opening arguments begin August 18, 2026, in the U.S. District Court for the Northern District of California. No monetary penalty or final remedy has yet been imposed.