Fake celebrity endorsements spark legal action against Meta in Japan

iNDICA NEWS BUREAU-

Facebook and Instagram owner Meta Platforms Inc. will face fresh lawsuits in Japan over advertisements that fraudulently solicited investment funds with fake endorsements from celebrities, local media reported.

Around 30 plaintiffs will seek at least 300 million yen (about $2 million) from the U.S. technology giant and its Japanese arm, arguing they failed to do enough to prevent the scams, Kyodo News reported on Wednesday, October 23, citing lawyers for the plaintiffs.

The damages suit will be filed with five district courts across the country, including Saitama, Chiba, and Osaka, the report said.

Among the names of noted people used in the adverts are Japanese entrepreneur Yusaku Maezawa, founder of online fashion retailer Zozo Inc., the report added.

The plaintiffs viewed the fake advertisements before being directed to transfer money to designated investment accounts, the lawyers said, arguing that Meta is obliged to investigate the content of adverts and not allow them to be posted on social media if it can foresee the risk of harm to users, Xinhua news agency reported.

Meta was sued earlier this year in a similar suit filed in Kobe by a group of four people. The company is seeking dismissal of the damages claim of 23 million yen ($150,500).

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