Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Key Moments

  • A German court ruled Meta is liable for fake investment ads on Instagram and Facebook that misused a German financial portal’s logo and founder’s image.
  • The court found Meta could not invoke the Digital Services Act’s lack-of-knowledge defense due to its algorithmic control and advertising practices.
  • Meta was ordered to remove the infringing content, disclose details and related revenue, and pay damages, though the ruling is not yet final.

Court Finds Meta Responsible for Third-Party Fraudulent Ads

A German court ruled that Meta is legally responsible for fraudulent advertisements placed by third parties on its Instagram and Facebook platforms. In its decision, the court ordered the U.S.-based company to take down such content and pay damages.

The case was initiated by the operator of a German financial portal and the portal’s founder. Their trademarked logo and personal image were allegedly used without authorization in posts that promoted investments with purported fraudulent intent.

Alleged Violations and Meta’s Response Timeline

According to the court, the financial portal’s operator reported nearly 260 violations to Meta in August 2024 alone. The ruling stated that in some instances, it took Meta as long as 62 days to remove specific pieces of offending content.

MetricDetail
Number of reported violationsNearly 260 in August 2024
Maximum removal time citedUp to 62 days for some content
Obligations imposed on MetaRemove fake ads, pay damages, disclose ad details and related revenue

Digital Services Act Defense Rejected

The court held that Meta could not rely on the lack-of-knowledge defense under the Digital Services Act. It reasoned that, in contrast to a purely chronological feed, Meta exerts influence over what users see through its algorithms and advertising systems, which in the court’s view creates a different level of responsibility.

The decision referenced a June ruling by the European Court of Justice as a precedent, according to the court’s statement.

Meta’s Reaction and Disclosure Requirements

A Meta spokesperson responded to the ruling, stating: “We respectfully disagree with this decision and are considering next steps,” and added that the company had taken significant action, including proactive detection measures and removal of reported content.

The ruling, dated September 16, further requires Meta to provide information about the fake advertisements at issue and to reveal the revenue it generated from them.

Appeal Still Possible

The court indicated that the decision is not yet final. It may still be contested if an appeal is lodged.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • USD/CAD advanced on positive series of US dataUSD/CAD advanced on positive series of US data US dollar gained ground against its Canadian counterpart on Wednesday as well, boosted by a series of upbeat economic indicators out, released of the United States, while markets awaited the FOMC decision on policy.USD/CAD reached a […]
  • European stock indexes decline after Bernanke’s testimonyEuropean stock indexes decline after Bernanke’s testimony European stocks were little changed, as the main benchmark is heading to a session of loss, as China scrapped a lower limit on lending rates, in a compliance with losses in technology shares. U.S. futures were little changed, while Asian […]
  • US Stocks Stumble, S&P 500 Slips 0.54%US Stocks Stumble, S&P 500 Slips 0.54% Key Moments:The S&P 500 fell 0.54% after markets opened on Monday, ending a 9-session rally. The Dow edged lower by 0.19%, and the Nasdaq Composite also struggled with a 0.78% fall. A new 100% tariff on foreign-made movies weighed […]
  • Forex Market: AUD/USD daily forecastForex Market: AUD/USD daily forecast During yesterday’s trading session AUD/USD traded within the range of 0.9234-0.9308 and closed at 0.9235.At 9:12 GMT today AUD/USD was adding 0.28% for the day to trade at 0.9274. The pair touched a daily high at 0.9287 at 8:25 GMT, […]
  • Sony share price down, releases “The Interview” despite threatsSony share price down, releases “The Interview” despite threats Sony Pictures Entertainments "The Interview" was made available for online viewing on platforms, including Google Play, Youtube, Microsofts Xbox video and a dedicated Sony website, and will be released in around 300 cinemas around the US on […]
  • Australia’s home loans surprisingly shrink in MayAustralia’s home loans surprisingly shrink in May The total value of new home loans for owner-occupied homes in Australia unexpectedly shrank in May, by 2% month-over-month to AUD 18.13 billion, following a revised up 4.5% increase in April.In comparison, market consensus had pointed […]