Meta Platforms Inc. owner of Facebook and Instagram, is facing multiple lawsuits in Japan over fraudulent advertisements on its platforms. On October 29, 2024, 30 plaintiffs filed lawsuits across various Japanese district courts, seeking damages totaling approximately 435 million yen ($2.8 million). The core allegation is that Meta failed to prevent investment scams using fake celebrity endorsements. Plaintiffs claim they were defrauded after being lured by these ads to transfer money to fraudulent investment accounts.
The lawsuits argue that Meta and its Japanese subsidiary didn’t take sufficient action to investigate and prevent harmful advertisements, even after receiving removal requests from affected parties. This legal action follows a previous case filed earlier in the year by four individuals in Kobe, which Meta is contesting. The plaintiffs’ lawyer suggests more lawsuits may follow. The case has broader implications for social media regulation, highlighting platform responsibility in preventing fraud and the need for stronger digital advertising regulations. It represents a significant test case for establishing platform accountability in protecting users from financial harm through misleading advertisements.