Celebrity-Endorsed Scam Ads: Meta Platforms Under Fire in Japan

• Meta Platforms Inc. is facing lawsuits in Japan over fraudulent ads on its platforms.
• About 30 plaintiffs are seeking a minimum of 300 million yen in damages.
• The plaintiffs argue that Meta failed to prevent these scam ads from being posted.
• The outcome of these lawsuits could set a precedent for future cases and impact ad content regulations.

Meta Platforms Inc., the parent company of social media giants Facebook and Instagram, is once again under legal scrutiny. This time, the tech behemoth is facing a series of lawsuits in Japan over allegations of fraudulent advertisements on its platforms. These ads, according to the plaintiffs, falsely used celebrity endorsements to solicit investment funds, leading to significant financial losses for those who fell for the scam.

The lawsuits are being brought forward by approximately 30 plaintiffs who are seeking a minimum of 300 million yen in damages. They argue that Meta Platforms Inc. and its Japanese subsidiary failed to take adequate measures to prevent these fraudulent ads from being posted on their platforms. The lawsuits will be filed in five district courts across Japan, including those in Saitama, Chiba, and Osaka.

One of the notable names used in these deceptive ads is Yusaku Maezawa, a renowned Japanese entrepreneur and founder of the online fashion retailer Zozo Inc. Maezawa, who made headlines in 2021 for his journey to the International Space Station aboard a Russian spacecraft, was unwittingly implicated in these scam ads.

The Role of Meta in Ad Regulation

The plaintiffs’ legal team argues that Meta has a responsibility to scrutinize the content of advertisements posted on its platforms. They contend that if the company can foresee a risk of harm to its users, it should not allow such ads to be posted. This case follows a similar lawsuit filed earlier this year in Kobe by a group of four individuals. Meta is currently seeking dismissal of the damages claim in that case.

This is not the first time that Meta has faced legal action over its advertising practices. The company has been repeatedly criticized for its perceived lack of oversight and regulation of ads on its platforms. Critics argue that the company’s algorithms and policies often fail to catch and remove misleading or fraudulent content, leading to potential harm for its users.

In the past, Meta has faced similar lawsuits in various jurisdictions. For instance, in 2018, the company was sued in the United States for allegedly allowing discriminatory ads on its platform. The lawsuit claimed that Meta’s ad targeting tools enabled advertisers to exclude certain demographics from seeing their ads, a violation of federal housing and employment laws.

Implications for Meta and the Tech Industry

The current lawsuits in Japan highlight the ongoing challenges that Meta and other tech giants face in regulating content on their platforms. As these companies continue to grow and influence global communication, the need for effective oversight and regulation becomes increasingly critical. These lawsuits serve as a stark reminder of the potential harm that can befall users when tech companies fail to adequately monitor and regulate the content on their platforms.

The outcome of these lawsuits could have significant implications for Meta and other social media companies. If the plaintiffs are successful, it could set a precedent for future cases, potentially leading to stricter regulations and higher standards for ad content. On the other hand, if Meta is successful in dismissing these claims, it could embolden other companies to continue with their current practices.

In conclusion, the lawsuits against Meta in Japan underscore the urgent need for tech companies to take greater responsibility for the content shared on their platforms. As the digital landscape continues to evolve, it is crucial that these companies invest in robust systems and policies to protect their users from fraudulent and harmful content. The tech industry, regulators, and users will be watching closely as these lawsuits unfold, with the outcomes likely to shape the future of digital advertising and consumer protection in the digital age.