Whistleblower Alleges Meta Artificially Boosted Shops Ads Performance

An anonymous reader quotes a report from Adweek: Meta wanted advertisers to believe its ecommerce ad product, Shops ads, was outperforming the competition, per a whistleblower complaint filed in a U.K. court. The former employee alleges the social media giant artificially inflated return on ad spend (ROAS) by counting shipping fees as revenue, subsidizing bids in ad auctions, and applying undisclosed discounts. The complaint, viewed by ADWEEK, was filed with the London Central Employment Tribunal on Wednesday (August 20) by Samujjal Purkayastha, a former product manager on Meta's Shops ads team. The document claims Meta artificially inflated performance metrics to push brands toward its fledgling ecommerce ad product.

The company's motivation, the complaint says, was in part to combat Apple's 2021 privacy changes that cut the troves of iOS tracking information that had long powered Meta's ad machine. Meta's former chief financial officer (CFO), David Wehner, said the changes would cost 'on the order of $10 billion' in losses during the company's Q4 2021 earnings call. User purchases on Facebook or Instagram Shops pages would provide more first-party data, however. Purkayastha, who joined Meta (then Facebook) in 2020 as a product manager on the Facebook Artificial Intelligence Applied Research team, was reassigned to the Shops Ads team in March 2022 and remained at the company until Feb. 19, 2025, when he was terminated.

He alleged that during internal reviews in early 2024, Meta data scientists found the return on ad spend (ROAS) from Shops ads had been inflated between 17% and 19%. This discrepancy stemmed from Meta counting shipping fees and taxes as part of a sale, even though that money never went to merchants, he alleged. The company's other ad products exclude those figures, in line with competitors like Google, the complaint reads. Without including the fees and taxes, Shops ads performed no better than Meta's traditional ads, Purkayastha claimed. 'This was significant,' the complaint reads. 'In addition to the ROAS performance metric being overstated by nearly a fifth, it meant that, rather than having exceeded our primary target, the Shops Ads team had in fact missed it once the figure was reduced to take account of the artificial inflation.' Purkayastha raised these concerns with senior leadership in multiple meetings between 2022 and 2024, and is now seeking interim relief through his employment tribunal filing to have his former position reinstated.

A Meta spokesperson told ADWEEK the company is 'actively defending these proceedings,' adding that 'allegations related to the integrity of our advertising practices are without merit and we have full confidence in our performance review processes.'

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