Facebook owner Meta sued at courts in Japan over fake ads

Facebook and Instagram owner Meta Platforms Inc. faced fresh lawsuits in Japan on October 29 over advertisements that fraudulently solicited investments with fake celebrity endorsements, with 30 plaintiffs seeking a total of 435 million yen ($2.8 million) in damages, Report informs via Kyodo News.

The US technology giant and its Japanese arm failed to do enough to prevent the scams, according to the plaintiffs' complaint. The damages suits were filed with district courts in Osaka, Kobe, Yokohama, Chiba and Saitama.

Among the names of people used in the adverts are Japanese entrepreneur Yusaku Maezawa, the founder of online fashion retailer Zozo Inc. who traveled to the International Space Station aboard a Russian spacecraft in 2021.

The plaintiffs viewed the fake advertisements before being directed to transfer money to designated investment accounts.

They argue 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.

Meta was sued earlier this year in a similar suit filed in Kobe by a group of four people. The company is seeking dismissal of the damages claim.