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Yokohama Court Dismisses Meta Lawsuit Over Fake Ads

By Drooid · · How we work

Background of Fake Advertising Claims in Japan

Investment-fraud victims and a company filed a damages suit in Yokohama alleging that Meta Platforms and its Japanese subsidiary allowed advertisements that used the names and images of celebrities without permission. The plaintiffs sought roughly ¥43 million, arguing that Meta knew fake ads were widespread on Facebook and other platforms and could have removed them. Similar complaints have been lodged in five other Japanese district courts.

Official Findings and Legal Reasoning

Presiding Judge Katsumi Takagi concluded that the court could not determine that Meta was able to readily identify the disputed advertisements as fraudulent when they were posted. The judge noted that the plaintiffs had not shown evidence that Meta had received concrete information indicating the ads were fake during the period the ads were viewed (April–November 2023). Accordingly, the court held that Meta was not obligated to verify the truthfulness of every ad or prevent them from appearing.

Reactions from Plaintiffs and Implications

Attorney Takako Shirota, representing the plaintiffs, described the ruling as unjust and warned that it could encourage further proliferation of deceptive ads, potentially increasing investment-fraud risk on social media. The plaintiffs indicated they will appeal the decision, emphasizing concerns that the judgment may set a precedent limiting liability for platforms that host unauthenticated content.

Outlook

The dismissal marks the first judgment among a series of parallel lawsuits across Japan, and the forthcoming appeal will test how Japanese courts assess the responsibilities of global tech companies for user-generated advertising. The outcome could influence future legal strategies of both victims of online fraud and platforms defending against similar claims.