The Yokohama District Court dismissed a damages lawsuit against Meta Platforms Inc. and its Japanese unit over fake ads that used celebrities’ names and images without permission. This case shows how the court examined Meta’s possible role in the ads.

The plaintiffs – six victims of investment fraud and one company – demanded roughly 43 million yen in damages. They argued that Meta knew fake ads were widespread on its platforms, including Facebook, and could have easily removed them, but left them online.

The court, however, said it was difficult to conclude that Meta could have easily recognized the ads as fraudulent at the time they were published. This assessment formed the core of the dismissal.

Presiding Judge Katsumi Takagi stated that Meta was not necessarily obliged to investigate and verify the truthfulness of the ads. The court also did not acknowledge that Meta had received information indicating the ads were fake between April and November 2023, nor that entrepreneurs Yusaku Maezawa and Takafumi Horie had asked for the ads to be deleted.

The plaintiffs plan to appeal the ruling. The dismissal reflects the court’s view that, based on the evidence presented, it could not be shown that Meta had a clear duty or ability to identify and verify every advertisement’s authenticity.