German court rules Meta liable for fake ads on platforms

Investing.com -- A German court ruled on Thursday that Meta Platforms Inc is liable for fake advertisements posted by third parties on Instagram and Facebook. The court ordered the company to remove such content and pay damages.

The lawsuit was filed by a German financial portal operator and its founder. Their trademarked logo and image were used without permission in posts that recommended investments with alleged fraudulent intent.

The portal operator reported nearly 260 violations to Meta in August 2024. Meta took up to 62 days to remove some of the content, according to the court.

The court determined that Meta cannot rely on the Digital Services Act's lack-of-knowledge defense. The ruling stated that Meta exercises control over content through its algorithms and advertising practices, unlike purely chronological feeds. The court referenced a June ruling by the European Court of Justice as precedent.

A Meta spokesperson said the company disagrees with the decision and is considering next steps. The spokesperson added that Meta has taken action, including proactive detection measures and removal of reported content.

The ruling, dated September 16, requires Meta to disclose details of the fake advertisements and revenue generated from them.

The ruling is not final and may be challenged through an appeal, the court said.

You May Also Be Interested In

• Paramount Weighs Tapping Musk For Equity Investment - Semafor
• Boeing pushes suppliers to adopt automation over craftsman methods
• Mortgage rates hit highest level since 2024, demand falls