A German court has ruled that Meta is liable for fake advertisements posted by third parties on Facebook and Instagram, ordering the technology company to remove the fraudulent content and pay damages.
The ruling was issued on Wednesday in a lawsuit brought by the operator of a German financial portal and its founder after their trademarked logo and image were allegedly used without permission in advertisements promoting fraudulent investment opportunities.
According to the court, the portal operator reported nearly 260 violations to Meta in August 2024 alone, but some of the content took as long as 62 days to be removed.
The court rejected Meta’s reliance on the Digital Services Act’s lack-of-knowledge defence, ruling that the company exercised control over content through its algorithms and advertising practices.
The court also referred to a June ruling by the European Court of Justice in reaching its decision.
See also: FRSC Warns Nigerians as Fraudsters Impersonate Corps in Fake SMS Scam
Under the ruling, Meta must disclose details of the fake advertisements and the revenue generated from them.
A Meta spokesperson said the company disagreed with the decision and was considering its next steps.
“We respectfully disagree with this decision and are considering next steps,” the spokesperson said, adding that Meta had taken significant action, including proactive detection measures and the removal of reported content.
The ruling, dated September 16, is not yet final and can be challenged through an appeal, according to the court.
The decision could have implications for how social media platforms are held responsible for fraudulent advertising posted and distributed through their services.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
