Meta is facing a new lawsuit over its advertising practices. The nonprofit group Consumer Federation of America (CFA) has filed a proposed class-action suit against Meta for "failing to protect users" from scam ads on Facebook and Instagram. The lawsuit, which was first reported by Wired , alleges that Meta has run afoul of consumer protection laws in Washington D.C. for misleading Facebook and Instagram users about scams on its apps and that the company has "chased profits rather than protecting its users." The filing includes numerous examples of alleged scam ads that CFA says it found in Meta's ad library. These include ads promoting a "free government iPhone," as well as those claiming to offer $1,400 checks to people born in certain years. Many of the ads use AI videos, according to CFA. Some of examples of alleged scam ads CFA includes in its lawsuit. CFA Meta's advertising practices have been in the spotlight since last year when Reuters reported on internal documents that indicated the company was making billions of dollars from ads promoting scams and banned goods. The report also highlighted how Meta's own processes have at times made it harder for its own employees to fight malicious advertisers. "Meta claims it is doing all it can to crack down on scam advertising on its platforms," CFA's lawsuit states. "But in reality, Meta has knowingly taken steps and adopted policies that pad its bottom line at the expense of its users’ safety and well-being. In fact, rather than prohibiting advertisers who the company itself has determined pose a higher risk to its users (as other tech companies like Google have), Meta just charges these advertisers more. The perverse result is that the riskier the advertiser, the more money Meta makes." CFA's allegations "misrepresent the reality of our work and we will fight them," a Meta spokesperson said in a statement. "We aggressively combat scams across our platforms to protect people and businesses — last year alone, we removed over 159 million scam ads, 92% of which we took down before anyone reported them, and took down 10.9 million accounts on Facebook and Instagram associated with criminal scam centers. We fight scams because they are bad for business — people don't want them, advertisers don't want them, and we don't want them either.” This article originally appeared on Engadget at https://www.engadget.com/social-media/meta-has-misled-users-about-scam-ads-on-facebook-and-instagram-lawsuit-says-193220235.html?src=rss
New York is the latest state to take a stand against prediction markets. Attorney General Letitia James has sued Coinbase Financial Markets and Gemini Titan on charges that both are illegally running unlicensed gambling operations. The suit also claims that these prediction markets violate state laws that prevent betting on games involving New York college sports teams. "Gambling by another name is still gambling, and it is not exempt from regulation under our state laws and Constitution," James said. "Gemini and Coinbase’s so-called prediction markets are just illegal gambling operations, exposing young people to addictive platforms that lack the necessary guardrails." Multiple states have taken similar actions over the proliferation of prediction markets, but they may face a new roadblock at the federal level. Earlier this month, the US Commodity Futures Trading Commission sued three of the states that have charged prediction markets with running unlicensed gambling. The CFTC claimed that it should be the sole regulator for prediction markets and called the efforts by Arizona, Connecticut and Illinois an overreach of authority. This article originally appeared on Engadget at https://www.engadget.com/big-tech/new-york-attorney-general-sues-two-prediction-markets-on-illegal-gambling-allegations-192012225.html?src=rss
Ask Americans how they feel about AI and most say they have concerns. Communities have mounted resistance to data center projects, stalling them across the US. On social media, anger at AI companies and executives is unrestrained - sometimes to the point of condoning violence. But look at the issues that most campaigns are focused […]
