Meta held liable by German court for fraudulent advertisements

The Frankfurt Regional Court has ruled that Meta Platforms is liable for fraudulent third-party advertisements on Facebook and Instagram that impersonated the financial education brand Finanzfluss and its founder, Thomas Kehl.

In a significant legal interpretation of the Digital Services Act (DSA), the court determined that Meta cannot claim the hosting exemption typically granted to neutral technical service providers. The ruling noted that because Meta’s automated auctions and feed algorithms control the distribution and visibility of content, the company plays an active role in the process rather than acting as a mere neutral host.

The court issued several orders, including injunctions to prevent the distribution of unauthorized content using Kehl’s likeness or the Finanzfluss brand. Meta is also required to disclose data regarding the reach and revenue generated by these fraudulent ads and must pay damages for losses incurred. To enforce compliance, the court set potential administrative fines of up to 250,000 euros for each future violation.