Meta sued for $2 million in compensation in Japan for fraudulent advertising

Meta is facing multiple lawsuits for failing to block fraudulent ads - Photo: REUTERS

Technology group Meta, owner of social media platforms Facebook and Instagram, will face new lawsuits in Japan over investment-seeking ads with fake endorsements from celebrities.

About 30 plaintiffs are seeking at least 300 million yen ($2 million) in damages from the U.S. tech giant and its Japanese affiliate, arguing they did not do enough to prevent the scams, lawyers said on October 23. The damages lawsuits will be filed in five district courts across the country.

Earlier in late April this year, Facebook Japan was also involved in a similar lawsuit, when many users said they had "fallen into the trap" of investment ads promising high profits, using images of billionaires like Yusaku Maezawa.

Despite not being authorized, scammers often use the image of the billionaire founder of Japan's largest online clothing retailer in a typical ad with the caption: "Start with 10,000 yen. Earn 1.3 million yen in 4 days." Victims are demanding 23 million yen ($148,000) in compensation from Facebook Japan.

Online scams posted on Facebook and other social media channels in Japan caused 27.8 billion yen ($178 million) in losses last year, according to the National Police Agency.

In Japan, scam ads only used celebrity images, while many other countries have recorded more sophisticated, elaborate scams using "deepfake" videos of celebrities urging people to invest in fraudulent schemes.

Source: https://tuoitre.vn/meta-bi-kien-doi-boi-thuong-2-trieu-usd-tai-nhat-ban-vi-quang-cao-lua-dao-20241023111131205.htm