Meta faces new legal challenges in Japan over fraudulent ads

By AJP Posted : October 24, 2024, 09:30 Updated : October 24, 2024, 09:30
This illustration shows figurines with computers and smartphones below the Facebook logo Reuters-Yonhap
This illustration shows figurines with computers and smartphones below the Facebook logo. Reuters-Yonhap
SEOUL, October 24 (AJP) - Social media giant Meta Platforms Inc., owner of Facebook and Instagram, is set to face multiple lawsuits in Japan over cryptocurrency scam advertisements that falsely used celebrity endorsements.

The litigation announced on Wednesday, will be filed by about 30 plaintiffs across five district courts including Saitama, Chiba and Osaka, targeting both Meta and its Japanese subsidiary. They are seeking damages of about 300 million yen (US$1.9 million).

The advertisements allegedly misused the identity of several public figures, including Japanese e-commerce pioneer and space tourist Yusaku Maezawa, founder of online fashion retailer Zozo Inc.

The plaintiffs argue that the U.S. technology company bears responsibility for verifying advertisement content before publication on its platforms, claiming victims were directed to transfer funds to designated investment accounts after viewing the fraudulent ads.

The fresh legal action follows a similar case filed earlier this year in Kobe, where Meta is currently contesting the claims.
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