What part of making a fraudulent Facebook account and friending users to get their information isn't fraud?

That's hearsay and I highly doubt it happens on an institutional scale.

Yeah, this seemed like a clear line if ever one was needed. My company builds F2P games that are ad supported, but my god that is some disgusting crap right there.

I'd say it's a difference of degree, not of kind. Generally, fraud is a deliberate deception to secure an unfair gain. Advertising is this too, but usually it's harmless enough that we don't mind. Sometimes though it crosses the line.

As the quote goes, "Any sufficiently advanced business model is indistinguishable from a scam." (https://news.ycombinator.com/item?id=8227941)

Perhaps, but if we're going to go that far we should also start regulating fashion to protect whales from themselves. It also depends immensely on a small number of people being manipulated through advertising to buy a lot.