German Court Rules Meta Liable for Fake Investment Ads on Facebook

A German court ruled Meta legally responsible for fraudulent investment advertisements posted by third parties on Facebook and Instagram. The case was brought by a German financial portal and its founder after scammers used the portal's logo and the founder's image. Nearly 260 violations were reported in August 2024, and some ads remained online for as long as 62 days. The court ordered Meta to remove the ads, pay damages, and disclose details of the advertisements and the revenue generated from them. It rejected Meta's argument that the company lacked responsibility for user-generated content, saying its algorithms and advertising systems influence what users see and limit protections under the European Union's Digital Services Act. The court also referenced a June ruling by the European Union Court of Justice. Meta said it disagreed with the ruling, cited its proactive detection and removal efforts, and is considering an appeal. The decision is not yet final. Sources disagree on the date of the ruling, reporting September 16 or 17 and listing the year as either 2024 or 2026.