Additional lawsuits regarding deceptive investment advertisements are set to be filed against Meta this week. Approximately 30 victims of scams in Japan plan to initiate further legal action against Meta’s U.S. headquarters and its Japanese subsidiary, citing “fraudulent advertisements” that misrepresented celebrities on social media platforms.
The plaintiffs aim to claim around 400 million yen (approximately 2.68 million U.S dollars) in damages through lawsuits filed in district courts in Saitama, Chiba, Yokohama, Osaka, and Nagoya. Previous lawsuits have already been lodged at the Kobe District Court and other venues, with the total number of plaintiffs expected to reach around 60 and the cumulative claims surpassing 800 million yen.
These new lawsuits are anticipated to broaden the initiative to hold Meta and its Tokyo-based subsidiary accountable for their inaction in addressing the issue of fake investment advertisements. The victims assert that they were misled by false ads on Meta’s Facebook and Instagram platforms, impersonating notable figures such as businessman Yusaku Maezawa. They contend that Meta did not take adequate steps to verify the authenticity of these advertisements.
In response to earlier lawsuits, Meta denied the allegations, stating that its automated detection system is designed to eliminate fraudulent ads and that the company is not obligated to thoroughly investigate the authenticity of all advertisements. Meta further argued that the plaintiffs engaged with the scammers via the Line app, thus distancing itself from any responsibility regarding the scams.
In June 2024, Japan’s communications ministry urged Meta and other social media platforms to reveal their advertising screening criteria and expedite the removal of harmful ads in light of the escalating severity of fraud cases. The National Police Agency reported 6,380 instances of investment scams linked to social media in 2024, marking an increase of 4,109 cases from the previous year. Total damages claimed amount to 87 billion yen (576 million U.S. dollars).
