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Home » Advertising » Facebook Potential Reach Settlement: Facebook Faces Class Action Over Alleged Ad Reach Inflation

Facebook Potential Reach Settlement: Facebook Faces Class Action Over Alleged Ad Reach Inflation

Posted on May 28, 2025 Written by Bill Hartzer

Facebook Faces Class Action Over Alleged Ad Reach Inflation

 

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  • Facebook Ad Buyers from 2015 to 2021 May Be Included in Federal Class Action
    • Why This Case Matters
    • Who Could Be Affected?
    • Your Choices
    • Next Steps and Trial Date
    • Where to Learn More
  • What This Means for Advertisers

Facebook Ad Buyers from 2015 to 2021 May Be Included in Federal Class Action

A new class action lawsuit is moving forward that could impact thousands of businesses and marketers who bought Facebook or Instagram ads between August 15, 2015, and October 27, 2021.

The lawsuit, filed as DZ Reserve, et al. v. Meta Platforms, Inc. (Case No. 3:18-cv-04978), claims that Facebook misrepresented a key advertising metric known as “Potential Reach.” This figure, often used to forecast how many people an ad might reach, allegedly gave a distorted picture by counting accounts, not individual users. In practice, that may have led advertisers to believe their ads would be shown to more people than was possible.

Why This Case Matters

The plaintiffs argue that this inflated number wasn’t a harmless mistake. They claim it led to inflated ad pricing, which means businesses may have overpaid to reach audiences that didn’t actually exist in the way Facebook suggested. The lawsuit also claims Facebook didn’t make it clear enough that these numbers included duplicate and fake accounts.

Facebook denies the accusations and says advertisers were never charged based on Potential Reach. Instead, pricing was based on real-time performance—clicks, impressions, and engagement metrics that were delivered through its ad dashboards. The company also claims it disclosed the limitations of the Potential Reach figure, including the possibility of duplicates.

Who Could Be Affected?

Anyone who paid for ads on Facebook or Instagram using Ads Manager or Power Editor during the class period may be affected. There are exceptions—certain types of ad purchases and targeting strategies are excluded. The full eligibility list is available at FacebookPotentialReachLawsuit.com.

If at least one of your ads doesn’t fall under the five exempt categories, and you’re based in the U.S., you’re likely part of the class.

Your Choices

If you’re included, you have two paths.

You can stay in the class. That means you don’t need to do anything now. You’ll be part of the case automatically and share in any future money or settlement that results. But you’ll also give up your right to sue Facebook separately for the same claims.

Or you can exclude yourself by July 28, 2025. If you opt out, you won’t get any part of a settlement or judgment, but you keep the right to sue on your own.

Next Steps and Trial Date

The case is scheduled for a jury trial starting October 14, 2025, at the U.S. District Court for the Northern District of California in San Francisco. Both sides will present evidence. The jury and judge will decide whether Meta misled advertisers or not.

Until then, no one knows how this will end—or if advertisers will receive any compensation at all.

Where to Learn More

Full details, including official notices, legal documents, and contact information, are available at FacebookPotentialReachLawsuit.com. You can also call 888-206-2123 or write to:

Facebook Potential Reach Class Action
c/o A.B. Data, Ltd.
P.O. Box 173105
Milwaukee, WI 53217

What This Means for Advertisers

This case raises questions about how digital advertising platforms define value and deliver transparency. Many businesses rely on metrics like Potential Reach to plan campaigns and set budgets. If those numbers aren’t reliable—or aren’t clearly explained—advertisers could be left paying more than they should.

Even though Facebook disputes the claims, the outcome could change how advertising metrics are presented in the future. For now, affected advertisers have a decision to make: stay in the case or go their own way.

Filed Under: Advertising

About Bill Hartzer

Bill Hartzer is the CEO of Hartzer Consulting and founder of DNAccess, a domain name protection and recovery service. A recognized authority in digital marketing and domain strategy, Bill is frequently called upon as an Expert Witness in internet-related legal cases. He's been sharing insights and research here on BillHartzer.com for over two decades.

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