Meta Ruled Liable by German Court for Fake Investment Ads on Instagram, Facebook
German Court Decision and Implications for Meta
Background of the Lawsuit
Sept 17 (Reuters) - A German court has ruled that Meta is liable for fake advertisements posted by third parties on its Instagram and Facebook platforms, and ordered the U.S. tech giant to remove such content and pay damages, the court said on Thursday.
The lawsuit was brought by the operator of a German financial portal and its founder, whose trademarked logo and image were used without consent in posts recommending investments allegedly with fraudulent intent.
Details of the Violations and Meta's Response
Reported Violations and Meta's Actions
• The portal operator reported nearly 260 violations to Meta in August 2024 alone; however, Meta took up to 62 days to remove some content, the court said.
Legal Reasoning and Precedents
• It ruled Meta could not rely on the Digital Services Act's lack-of-knowledge defence, because unlike purely chronological feeds, it exercises control over the content through its algorithms and advertising practices.
• The court referred to a precedent set by a June ruling by the European Court of Justice.
Meta's Statement
• "We respectfully disagree with this decision and are considering next steps," a Meta spokesperson said in a statement, adding that the company had taken significant action, including proactive detection measures and removal of reported content.
Consequences and Next Steps
Disclosure and Financial Implications
• According to the ruling, dated September 16, Meta must also disclose details of the fake advertisements and revenue generated from them.
Appeal Process
• The ruling is not yet final and may be challenged by lodging an appeal, the court said.
Reporting Credits
(Reporting by Linda Pasquini, Editing by Miranda Murray)
