Information
A Reuters investigation found that Meta knowingly tolerated high levels of fraudulent and banned advertising from Chinese advertisers on Facebook, Instagram and WhatsApp in order to protect revenue. Internal documents show Meta estimated that about 19% of its China-based ad revenue, more than $3 billion annually, came from scams, illegal gambling, pornography and other prohibited content. Although Meta briefly created a specialized team in 2024 that cut fraudulent Chinese ads roughly in half, the effort was later paused after internal “strategy pivots” and executive follow-up, with documents citing concerns about minimizing “revenue impact.” By mid-2025, banned ads had rebounded to about 16% of Meta’s China revenue, underscoring the company’s willingness to accept elevated misconduct levels on a long-term basis.
The investigation details how Meta’s complex reseller system in China, reliant on large ad agencies that recruit smaller intermediaries, made enforcement difficult and allowed scammers to operate with little risk. Internal and consultant reports warned that Meta’s own policies, including “whitelisting” protections for major partners, enabled fraud by letting flagged ads continue running during lengthy reviews. While Meta said it relies on automated systems, removes millions of ads and cooperates with law enforcement, Reuters’ findings show repeated decisions to scale back enforcement when financial stakes were high.
Source: Reuters
So What
The revelations highlight a serious issue that warrants investigations in the U.S. and internationally, as harmful advertising reflects major regulatory failures. Beyond scams and illegal gambling, these tactics could also be used for political purposes, promoting divisive messaging at scale. Even if Meta faces penalties, the damage to users and public discourse has already occurred, and any fines are unlikely to exceed the profits gained from allowing such practices.
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