Meta Platforms Faces Fresh Lawsuits in Japan Over Fake Celebrity-Endorsed Advertisements
Meta Platforms Inc., the owner of Facebook and Instagram, has faced fresh lawsuits in Japan over advertisements that fraudulently solicited investments with fake celebrity endorsements. The company is facing damages claims from 30 plaintiffs seeking a total of 435 million yen (US$2.8 million).
Background
The US technology giant and its Japanese arm have been accused of failing to take sufficient action to prevent the scams, which were discovered to have used the faces of several well-known Japanese entrepreneurs, including Yusaku Maezawa, the founder of online fashion retailer Zozo Inc., who traveled to the International Space Station aboard a Russian spacecraft in 2021.
Complaint
The plaintiffs are seeking damages from Meta for the harm and distress caused by the fraudulent advertisements, which they claim were viewed by them before being directed to transfer money to designated investment accounts. They are also seeking compensation for the emotional distress and financial losses incurred as a result of the scams.
Action by Plaintiffs
The plaintiffs’ complaint argues that Meta is obliged to investigate the content of adverts and not allow them to be posted on social media if it can foresee the risk of harm to users. They also claim that Maezawa and another entrepreneur, Takafumi Horie, made requests for the false advertisements to be removed, but Meta "ignored them and caused more damage."
Case Update
This is not the first time Meta has faced legal action in Japan over its advertising practices. In a similar case filed earlier this year, a group of four people sued the company in Kobe, seeking damages for false advertising. Meta is seeking to have that case dismissed.
Conclusion
The recent lawsuits against Meta in Japan highlight the need for social media platforms to take responsibility for the content that appears on their platforms. As the number of people using social media continues to grow, it is essential that companies like Meta take steps to prevent fraudulent activities and protect their users from harm.
FAQs
- What are the allegations against Meta?
- Meta is accused of allowing fake celebrity-endorsed advertisements to be posted on its platforms, which fraudulently solicited investments from users.
- How many lawsuits has Meta faced in Japan?
- This is the second group of lawsuits filed against Meta in Japan, following a similar case filed earlier this year in Kobe.
- What is the total amount of damages being sought by the plaintiffs?
- The 30 plaintiffs are seeking a total of 435 million yen (US$2.8 million) in damages.