Meta faces lawsuits in Japan over fake celebrity-endorsed investment ads

Meta, the owner of Facebook and Instagram, is facing lawsuits in Japan for not blocking fraudulent social media ads related to investments that feature the names and images of celebrities.

According to multiple Japanese media reports such as NHK and Kyodo News, a total of 30 victims filed lawsuits on Tuesday (29 October) in five district courts across Saitama, Chiba, Yokohama, Osaka, and Kobe against Meta. They are seeking a total of JP$435 million (HK$23 million) in damages from Meta and its Japanese arm. 

The plaintiffs allege that they were defrauded by investment-soliciting ads on Facebook and Instagram that featured false endorsements purportedly from celebrities, including entrepreneur Maezawa Yusaku (前澤友作), founder of online fashion retailer Zozotown.

According to the reports, the plaintiffs state that the victims, after seeing fake ads on social media that impersonated celebrities encouraging investment, were tricked into transferring money to specific accounts under the pretense of investing. The total amount transferred by the victims exceeded JP$100 million (HK5 million).

Meanwhile, Maezawa and another entrepreneur, Takafumi Horie (堀江貴文), requested the removal of the false advertisements, but Meta ignored them and caused more damage, said a lawyer representing the plaintiffs, according to Kyodo News.

The plaintiffs claim that Meta is responsible for reviewing advertisement content and preventing its posting on social media if it can foresee potential harm to users. They argue that the company failed to take adequate measures to stop the scams.

The lawyer of the plaintiffs told a press conference after filing a lawsuit with Osaka District Court that, while Meta said it is difficult to delete questionable ads, the legal team wants to show that allowing fake ads to remain is illegal. Meanwhile, the legal team is considering filing additional lawsuits and is urging affected individuals to contact them. 

In response, a spokesperson from Meta told MARKETING-INTERACTIVE in a statement that it does not comment on specific lawsuits. Meanwhile, it said it is enhancing its efforts to combat scam ads and is making substantial investments in various areas.

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This is not the first time Meta has faced lawsuits over fake ads in Japan. According to The Japan Times, in April, four individuals filed a lawsuit in the Kobe court after being deceived by fraudulent online investment ads that featured celebrities' images without their consent. They are seeking around JP$23 million (HK$1.2 million) in damages from Meta's Japanese arm.

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