Meta Sued Over Fraudulent Impersonation Ads on Facebook and Instagram
Four residents of Japan sued Meta on October 10, 2024, alleging the company failed to remove fraudulent advertisements impersonating celebrities on Facebook and Instagram that led them to investment scams. Meta argued it has no legal obligation to verify advertisement content and that AI-based automated screening makes detection of such fraudulent ads technically impossible.
What happened
Four residents of Kobe and Yokohama sued Meta on October 10, 2024, seeking approximately 23 million yen in damages for fraudulent advertisements impersonating celebrities on Facebook and Instagram.
Meta argued in its defense that Japanese law does not require social media providers to verify the truthfulness of investment advertisement content and that first-stage ad review is automated using AI tools, making detection of rights-violating advertisements 'impossible' under the system.
Reported impact
The plaintiffs viewed fake investment advertisements and subsequently engaged in extended communications via LINE messaging before becoming victims of fraud.
Index analysis
Meta contended that damages to the plaintiffs resulted from LINE messaging interactions rather than from Meta's failure to act, negating causal connection to Meta's inaction.
Governance controls
Meta stated that the high volume of advertisements requires automated first-stage screening tools.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.