"The reality is that [Facebook CEO Mark] Zuckerberg doesn't seem to understand, from my perspective, that he's undermining his brand by allowing political lies to be put on his platform," co-host Juan Williams said. "That, to me, lessens the trust that the consumer has."
Dorsey also seemed to throw shade at Zuckerberg -- who defended his social network's decision to allow political advertising, even if the ads contain dubious or false claims, under withering questioning in the House of Representatives last week.
Co-host Greg Gutfeld defended Facebook for their stance.
"I think a lot of people calling Facebook a bunch of lies is because it's actually another way to get information that isn't the mainstream media and the left," Gutfeld said. "The Democrats would like it just to come from The New York Times and The Washington Post."
Williams accused conservatives of flip-flopping on Facebook.
"I remember when the right was always on Facebook, 'Oh, you're trying to silence... conservatives,'" Williams said. "Now it's like, 'oh, yeah, put Trump's lies there, please.'"
Co-host Jesse Watters shot back at Williams saying Facebook users are "smart enough to tell the difference between a lie and the truth."
Fox News' Christopher Carbone contributed to this report.