Sao Paolo: Meta Platforms is facing a potential fine of up to $3.62 million after losing a lawsuit brought by Brazilian department store chain Havan. The retailer accused Meta of allowing paid advertisements that fraudulently used Havan’s name to deceive consumers.
A judge in Santa Catarina state ruled on Monday that Meta must block all unauthorized ads mentioning Havan or its owner, billionaire Luciano Hang, within 48 hours. Failure to comply could result in fines reaching up to 20 million reais.
Judge Joana Ribeiro emphasized in her ruling that Meta’s practice of selling ads without proper security measures to sustain its business model is unacceptable.
Havan hailed the decision as “a landmark” in defending the rights of the company and its owner. Meta, however, declined to comment and is expected to appeal the ruling.
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Havan’s lawsuit argued that Meta profits from these illicit ads without ensuring their legitimacy, leaving fraud victims to pursue legal action against the retailer. Earlier this year, Reuters’ fact-checking service in Brazil identified three false Havan ads on Meta’s platforms, all of which used artificial intelligence to mimic Hang’s voice. These fraudulent ads led victims to pay for nonexistent products.
