Meta Platforms Inc., the parent company of Facebook and Instagram, is facing significant legal scrutiny in Japan. On Tuesday, 30 plaintiffs filed lawsuits across five district courts, including Osaka, Kobe, Yokohama, Chiba, and Saitama. The lawsuits seek a staggering 435 million yen (approximately $2.8 million) in damages, alleging that Meta failed to act against deceptive advertisements that falsely claimed endorsements from well-known celebrities to lure users into fraudulent investment schemes.
Allegations of Negligence and Financial Harm
The lawsuits accuse Meta of negligence, arguing that the company did not adequately filter or remove misleading content, which led to considerable financial losses for users. Plaintiffs contend that Meta ignored numerous warnings about the harmful ads, enabling scammers to exploit its vast advertising network to deceive unsuspecting individuals.
Among the celebrities whose names and images were allegedly misappropriated are Yusaku Maezawa, founder of the online fashion retailer Zozo Inc., and Takafumi Horie, a prominent entrepreneur in Japan. Both Maezawa and Horie have publicly denied any involvement in these ads and requested their removal from Meta’s platforms as early as mid-2023. Despite their requests, the misleading advertisements continued to circulate, resulting in more victims being drawn into these scams.
The Deceptive Mechanism Behind the Ads
Victims have described a common pattern of deception facilitated by these ads, which featured familiar faces like Maezawa to entice users into clicking through to external sites. Once users provided their personal information, scammers would contact them directly, posing as financial advisors or legal professionals, and guide them through the process of setting up accounts on fraudulent trading platforms.
One victim recounted her experience after encountering an Instagram ad featuring a well-known executive. After clicking the link, she was led to a fake financial website where she entered her personal information. Shortly after, she received calls from two individuals claiming to be financial experts, who encouraged her to invest in what appeared to be a legitimate opportunity. Over three months, she transferred approximately 6.7 million yen to this fraudulent platform. It wasn’t until she lost access to her account and could no longer reach her supposed advisors that she realized she had been duped.
Legal Actions and Meta’s Accountability
Kusuo Tsuneoka, the lawyer representing the plaintiffs, has asserted that Meta disregarded requests to remove the fraudulent ads, causing further harm to victims. The lawsuits argue that Meta has a responsibility to monitor advertisements actively and filter out misleading content that could endanger users. By failing to act on ads flagged as suspicious, the plaintiffs contend that Meta allowed these scams to proliferate.
During a press conference in Chiba, Tsuneoka stressed the importance of encouraging more victims to step forward, advocating for stricter regulations to combat false advertising on social media. He hopes these lawsuits will compel Meta to take accountability for the content on its platforms and enhance its efforts to protect users.
A Pattern of Legal Scrutiny
This isn’t the first time Meta has been embroiled in legal challenges in Japan over deceptive advertisements. Earlier this year, in April, a similar case was filed in Kobe by four individuals who cited comparable fraudulent ads. That case is still pending, with Meta pushing for dismissal of the claims.
To assist other victims, the legal team has set up a consultation desk, urging those affected by online scams to come forward. They believe that increased awareness and reporting can lead to more stringent regulations and protections against fraudulent advertisements.
