SÃO PAULO – Meta Platforms will have to pay up to $3.62 million in fines after losing a lawsuit brought by Brazilian department store chain Havan, which had accused the social media company of accepting paid advertisements that fraudulently used the retailer’s name to deceive consumers.
A judge in the state of Santa Catarina ruled on Monday that Meta has 48 hours to block ads not commissioned by Havan that mention the company or its owner, billionaire Luciano Hang. If Meta fails to comply, it could face fines of up to 20 million reais.
In her ruling, Judge Joana Ribeiro said it was unacceptable for Meta to sell ads in an unsafe manner to maintain its business model.
In a statement on Monday, Havan called the decision a “milestone” in protecting the rights of the company and Hang.
Meta declined to comment. The company may appeal the decision.
In the lawsuit, Havan claims that Meta profits from illegal ads without taking responsibility or verifying their legitimacy, prompting fraud victims to sue the merchant.
Earlier this year, Reuters’ fact-checking service in Brazil verified three fake Havan ads on meta-platforms that used Hang’s image, all of which showed signs of using artificial intelligence to imitate the businessman’s voice.
The fraudulent ads tricked victims into paying for nonexistent products.
($1 = 5,5209 Reais)
