Facebook owner Meta faces US$2.8 mln lawsuits in Japan over fake ads

OSAKA: Facebook and Instagram owner Meta Platforms Inc. faced fresh lawsuits in Japan on Tuesday over advertisements that fraudulently solicited investments with fake celebrity endorsements, with 30 plaintiffs seeking a total of 435 million yen (US$2.8 million) in damages.

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.

Kyodo news reported 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.

Maezawa and another entrepreneur, Takafumi Horie, made requests for the false advertisements to be removed, but Meta "ignored them and caused more damage," said Kusuo Tsuneoka, a lawyer working for the plaintiffs.

Tsuneoka told a press conference in Chiba, near Tokyo, that the legal team is considering filing additional lawsuits, saying, "If more people speak out, we'll have more regulations in place against false advertising. We would like affected people to contact us."

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.

-- BERNAMA