German Court Rules Meta Liable for Fake Investment Ads on Facebook

A German court ruled that Meta is legally responsible for fraudulent investment advertisements posted by third parties on Facebook and Instagram, ordering the company to remove the ads and pay damages. The case was brought by a German financial portal and its founder after scammers allegedly used the portal’s logo and the founder’s image, with nearly 260 violations reported in August 2024 and some ads remaining online for as long as 62 days. The court rejected Meta’s argument that it lacked responsibility for user-generated content, saying its algorithms and advertising systems influence what users see and limit its ability to invoke protections under the European Union’s Digital Services Act. Meta must also disclose details of the advertisements and revenue generated from them. 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.