Meta Faces New Lawsuits in Japan Over Fake Investment Ads

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24 October 2024 - 11:22
Meta Platforms Inc., the owner of Facebook and Instagram, is facing fresh legal challenges in Japan as approximately 30 plaintiffs prepare to file lawsuits, accusing the tech giant of allowing fraudulent advertisements that falsely endorsed investment schemes using celebrity names. The plaintiffs are seeking at least 300 million yen (about $2 million) in damages, according to reports from Kyodo News.
The lawsuits, which will be filed in district courts across Japan, including in Saitama, Chiba, and Osaka, claim that Meta failed to prevent scams where users were lured into transferring money after seeing ads featuring fake endorsements from prominent figures like Yusaku Maezawa, founder of Zozo Inc. The plaintiffs argue that Meta is responsible for vetting advertisements and should have anticipated the risks posed by these scams, which led to significant financial losses for those affected.
This legal action follows an earlier suit filed in Kobe this year by four victims under similar circumstances, further increasing pressure on Meta to enhance its ad vetting procedures and protect users from fraudulent content.