Meta Platforms Faces Fine for Fraudulent Ads

By Victor Pinheiro
SÃO PAULO – Meta Platforms (NASDAQ:META) faces a fine of up to $3.62 million following a lawsuit from Brazilian department store chain Havan. Havan accused Meta of accepting paid advertisements that fraudulently used the retailer’s name to deceive consumers.

A judge in Santa Catarina ruled on Monday that Meta has 48 hours to block unauthorized ads mentioning Havan or its owner, billionaire Luciano Hang. Failure to comply could result in fines reaching up to 20 million reais.

Judge Joana Ribeiro stated that it’s unacceptable for Meta to sell ads insecurely to support its business model. In a statement, Havan referred to the decision as “a landmark” in safeguarding the rights of the company and Hang.

Meta has opted not to comment but has the option to appeal the ruling. Havan claimed in the lawsuit that Meta profits from illicit ads without taking responsibility or verifying their legitimacy, which led fraud victims to mistakenly sue the retailer.

Earlier this year, Reuters’ fact-checking service in Brazil verified three false ads on Meta platforms that misused Hang’s image. These advertisements showed signs of artificial intelligence imitating the businessman’s voice and led victims to pay for non-existent products.

$1 = 5.5209 reais