Meta faces multiple lawsuits in Japan over fraudulent investment Ads

Meta Platforms Inc. is facing lawsuits from 30 plaintiffs in Japan, claiming 435 million yen in damages over fraudulent investment ads with fake endorsements.

 

Meta Platforms Inc., the parent company of Facebook and Instagram, is confronting a wave of legal challenges in Japan, as 30 plaintiffs have filed lawsuits seeking a total of 435 million yen (approximately $2.8 million) in damages.

The plaintiffs allege that they suffered losses due to fraudulent investment advertisements that utilised fake celebrity endorsements.

 

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According to local media reports, the lawsuits were submitted across several district courts in cities including Osaka, Kobe, Yokohama, Chiba, and Saitama.

The plaintiffs contend that Meta, along with its Japanese subsidiary, failed to take adequate measures to prevent these alleged scams, which reportedly featured endorsements from well-known public figures.

The fraudulent advertisements allegedly led the plaintiffs to transfer money to designated accounts after viewing the misleading content.

The plaintiffs argue that Meta has a responsibility to carefully scrutinise ad content and block posts that could potentially harm users.

In addition to the recent lawsuits, a similar case was filed against Meta earlier in 2024 in Kobe, involving four plaintiffs. Meta has been actively seeking to dismiss this prior case, as reported by Kyodo News.

The legal actions against Meta underscore the ongoing concerns surrounding the regulation of advertising content on social media platforms, especially regarding the potential for fraudulent schemes exploiting user trust through false endorsements.