AppLovin Accused of Serving Explicit Ads to Children in Lawsuit
San Diego County officials allege the digital advertising giant exposed minors to graphic content in games despite parental controls.
Digital advertising giant AppLovin has been accused of serving sexually explicit and violent advertisements in children's games, allegedly bypassing parental controls designed to protect young users. The allegations are detailed in a lawsuit filed Monday by San Diego County officials in California state court.
The lawsuit contends that AppLovin, a company valued at approximately $100 billion that assists app developers with advertising and monetization, has exposed children to "graphic depictions of sex, violence, and sexual assault" through games rated as safe for children. Screenshots included in the legal filing reportedly show advertisements featuring scantily clad cartoon characters in suggestive situations, as well as ads for alcohol, vaping devices, and cannabis gummies, appearing in games rated "E for everyone" on Google's Play Store.
San Diego County officials allege that AppLovin's actions violate California's False Advertising Law and Unfair Competition Law. The suit seeks injunctive relief, restitution, and civil penalties.
AppLovin's internal policies, as stated on its website, claim the company does not "knowingly collect personal information from children or serve advertisements to children." However, the lawsuit accuses the company of gathering extensive data on children through a technique known as "fingerprinting." This data collection is alleged to be precise enough to identify children's locations, schools, and even when they are sleeping. The lawsuit further states that AppLovin has transformed child-friendly games into "surveillance platforms" that track users, monetize their personal information, and use deceptive interfaces to generate revenue.
This is not the first time AppLovin has faced scrutiny over its data practices. The lawsuit references investigations by short-seller firms Fuzzy Panda, Culper Research, and Muddy Waters, which collectively claimed the company collected data from children and displayed inappropriate ads in games played by minors. In October 2025, The Post reported that state regulators from Delaware, Oregon, and Connecticut were investigating AppLovin's practices. The Securities and Exchange Commission also launched an investigation into the company's advertising practices last year, though AppLovin's CFO stated in August that this investigation had concluded without enforcement action.
AppLovin has denied wrongdoing. In February 2025, CEO Adam Foroughi published a blog post refuting the short sellers' allegations, calling them "false and misleading claims aimed at undermining our success" and attributing them to short sellers seeking financial gain. He emphasized the company's use of sophisticated AI models to enhance advertising.
The lawsuit against AppLovin was filed concurrently with the launch of San Diego County's new Consumer Fairness and Public Protection Unit, which also announced legal actions against Roblox and Polymarket for alleged violations.
"People should be able to trust the products they buy, the apps their kids use and the companies they deal with," San Diego County Board Chair Terra Lawson-Remer said in a statement. "Families are already stretched thin by the cost of living. They should not also have to pay the price when companies mislead them, misuse their information or put their kids at risk."