A U.S. Court has rejected the dismissal motion of Meta, the IT giant, against a lawsuit brought against it by Australian billionaire Andrew Forrest, claiming that Meta allowed fake crypto related advertisements on their platform using his image.
U.S. District Judge Casey Pitts has asked Meta to face Forrest’s lawsuit which claims that several victims faced substantial losses due to misleading advertisements on crypto investments featuring his image.
Andrew Forrest, the executive chairman of Fortescue Metals Group, has taken legal action against Meta, accusing the tech giant of failing to prevent the misuse of his picture in deceptive crypto scam ads.
These ads, promoting fake investment opportunities, reportedly appeared over a thousand times between April and November 2023, primarily targeting Australian users. Forrest contends that Meta’s advertising systems are not as impartial as claimed, suggesting they may contribute to the deceptive nature of such content.
Forrest further argues that Meta profited more from scam ads than it would have from legitimate ones. He claims this shows Meta benefited from the misuse of his image, thereby breaching its duty to operate responsibly.
The judge’s decision to allow the case to proceed suggests a potential shift in the interpretation of legal responsibilities for social media platforms under U.S. law, particularly regarding Section 230 of the Communications Decency Act, which typically shields platforms from liability for third-party content.
This ruling is significant, as it is reportedly the first time a U.S. court has refused to let a social media company use Section 230 as a defense in a civil lawsuit related to its advertising practices. The outcome could set a precedent for how social media companies monitor and manage content, potentially leading to stricter scrutiny and higher standards for ad verification.
Forrest’s quest for compensatory and punitive damages underscores his broader mission to hold social media platforms accountable for facilitating financial scams. His stance resonates with many victims of similar frauds, emphasizing the need for stricter controls and transparency in digital advertising.
Amid these legal challenges, Meta has announced organizational changes, including reducing the number of vice-presidential roles. Approximately 50 executive positions are expected to be cut as part of the company’s strategy to streamline operations and reduce costs, reflecting Meta’s efforts to adapt to a challenging economic environment and maintain its competitive edge in technology.
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