Elon Musk posted a message on his account on X, saying that Meta has been falsely claiming credit for sales that have actually originated from X. Here’s what he had to say.
Elon Musk vs. Meta
He also shared a post stating that advertisers sued Meta for allegedly inflating ad viewership in a $7 billion lawsuit. Here’s his post on X:
Meta was also falsely claiming credit for sales that actually originated from đť•Ź https://t.co/Y7FnVb9HiM
— Elon Musk (@elonmusk) March 29, 2024
The original post on Search Engine Land notes the fact that Facebook and Instagram advertisers have filed a class-action lawsuit against Meta for $7 billion in San Francisco.
They allege that Facebook overstated ad viewership figures by up to 400%, causing them to pay inflated prices for ad placements on its platforms.
The advertisers who are suing Meta claim that the Potential Reach metric used by the company to calculate ad costs is based on the total number of social media accounts instead of individual users.
They contend that this method is flawed because it may include fake and bot accounts, resulting in advertisers paying more money for their ads to be displayed to bots.
Meta responds to allegations
Meta denied the allegations, and explained the fact that the price advertisers are charged is based on performance metrics – not the Potential Reach metric as claimed in the lawsuit. A Meta spokesperson told AdWeek:
“These allegations are baseless, and we will defend ourselves vigorously.”
Geoffrey Graber, who is a partner at Cohen Milstein and the lead counsel representing the advertisers, has expressed his anticipation to continue the litigation of the case on behalf of Meta’s advertising customers.
They aim to present evidence to a jury that Meta was aware of its inflated Potential Reach but refused to fix the issue due to revenue concerns.