Meta faces new lawsuits in Japan over fake ads

According to local media on Tuesday, 30 plaintiffs are suing Meta Platforms Inc., the parent company of Facebook and Instagram, in Japan, seeking a total of 435 million yen (roughly US$2.8 million) in damages for losses related to fraudulent investment ads that use phony celebrity endorsements.

The plaintiffs claim Meta and its Japanese subsidiary failed to take sufficient action to prevent the scams. Lawsuits were filed Tuesday across district courts in Osaka, Kobe, Yokohama, Chiba and Saitama, according to Kyodo News.

The ads allegedly featured endorsements from high-profile figures, leading the plaintiffs to transfer money to designated accounts after viewing the misleading content.

The lawsuits argue that Meta must scrutinize ad content and block posts that could harm users. A similar suit was filed against Meta earlier this year in Kobe, involving four plaintiffs, which Meta is currently seeking to dismiss, Kyodo reported.

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