Brifing

Tokyo Court Rejects Celebrity Lawsuit Against Meta Over Fake Ads

Court acknowledges publicity right infringement but denies injunction against Meta's platform operations.

The Japan Times3 min

1Court Ruling on Publicity Rights

The Tokyo District Court ruled that fake advertisements featuring entrepreneur Yusaku Maezawa on Facebook and Instagram violated his publicity rights. Despite this finding, Presiding Judge Naoyuki Iwai dismissed the request for an injunction against Meta. The court determined that the company is not directly responsible for the content posted by third parties.

2Platform Operator Liability Limits

Judge Iwai emphasized that Meta functions primarily as a platform operator rather than a content creator. The court concluded that the company is not directly involved in the creation or publication of individual posts. Consequently, the legal threshold for holding the platform liable for user-generated fraudulent advertisements was not met in this case.

3Corrective Measures and Injunctions

The court found no immediate risk of fake advertisements remaining unaddressed, citing the corrective measures already implemented by Meta. Because the platform has established protocols to handle such content, the judge ruled that an injunction was unnecessary. This decision highlights the legal distinction between platform oversight and direct liability for fraudulent activity.

4First Judicial Precedent Established

This ruling is considered the first judicial decision in Japan regarding whether fake advertisements impersonating celebrities constitute an infringement of their legal rights. While the court acknowledged the infringement, the denial of the injunction sets a significant precedent for how Japanese courts view the responsibility of social media giants in moderating content.

5Legal Team Expresses Disappointment

Following the verdict, Yusaku Maezawa’s legal counsel described the outcome as extremely disappointing. The lawyers expressed concern that the ruling might create a societal environment where victims are forced to suffer in silence. Maezawa is currently considering an appeal to challenge the court's decision and seek further legal recourse against the platform.

6Scope of Investment Fraud

The fraudulent advertisements, which promoted bogus investment services using Maezawa’s name and likeness, have been appearing on Meta platforms since at least June 2023. These deceptive posts have led to widespread financial harm, prompting victims to file lawsuits in six different district courts across Japan seeking damages from Meta and its Japanese unit.

7Broader Legal Challenges for Meta

This case follows a similar dismissal in the Yokohama District Court last October, marking the second major legal setback for plaintiffs in this series of lawsuits. Meta has maintained that it will continue its efforts to protect users from fraudulent activity, though the company faces ongoing scrutiny regarding its content moderation effectiveness.

8Implications for Future Litigation

The dismissal underscores the difficulty of holding global tech companies accountable for localized fraudulent content under current Japanese law. As more victims seek damages, the legal community remains divided on whether platform operators should be held to higher standards. Future appeals will likely focus on redefining the duty of care for platforms.

Original article: The Japan Times — Tokyo Court Rejects Celebrity Lawsuit Against Meta Over Fake Ads