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Meta held liable by German court for fraudulent third-party ads
A German court in Frankfurt has ruled that Meta Platforms is liable for fraudulent advertisements posted by third parties on Facebook and Instagram. The decision follows a lawsuit brought by the German financial advisory portal Finanzfluss and its founder, Thomas Kehl. The plaintiffs alleged that scammers used the company's trademarked logo and Kehl's image to promote deceptive investment schemes.
The court rejected Meta's defense under the Digital Services Act (DSA), which typically protects platforms that lack prior knowledge of illegal content. The judges ruled that because Meta uses algorithms to control the ranking, timing, and distribution of advertisements, it exercises active control over the content rather than acting as a passive intermediary. This reasoning aligns with recent precedents set by the European Court of Justice.
As a result of the ruling, Meta has been ordered to stop the distribution of these fake advertisements, pay damages for future harm caused by similar content, and disclose details regarding the fraudulent ads and the revenue they generated. Meta has stated it disagrees with the decision and is considering an appeal.
Entities
European Court of Justice · Finanzfluss · Landgericht Frankfurt · Landgericht Frankfurt am Main · Meta · Meta Platforms · Thomas Kehl
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 10 SOURCES] Meta is liable for fraudulent advertisements posted by third parties on Facebook and Instagram. www.beck-aktuell.de · n1info.ba · www.aftenposten.no · arynews.tv · www.epochtimes.de · +5 more
- [● 4 SOURCES] The court ordered Meta to cease the distribution of the fake ads and pay damages for future harm caused by similar content. www.aftenposten.no · arynews.tv · www.wz.de · www.n-tv.de
- [● 10 SOURCES] Meta's use of algorithms to control the ranking and timing of ads means it exercises control over content, negating the Digital Services Act's lack-of-knowledge defense. www.beck-aktuell.de · n1info.ba · www.aftenposten.no · arynews.tv · www.epochtimes.de · +5 more
- [● 2 SOURCES] Meta is ordered to disclose details regarding the fake advertisements and the revenue generated from them. arynews.tv · www.timesnownews.com
- [● 4 SOURCES] The company Finanzfluss reported nearly 260 violations to Meta in August 2024 alone. n1info.ba · arynews.tv · www.epochtimes.de · www.timesnownews.com
- [● 3 SOURCES] Meta expressed disagreement with the ruling and is considering legal next steps, including a potential appeal. www.aftenposten.no · arynews.tv · www.timesnownews.com