German Court Rules Meta Liable for False Ads on Its Platforms

News broke on September 20 that the Frankfurt Regional Court in Germany issued a landmark ruling in a false advertising case against Meta, holding that the company cannot invoke the safe harbor provisions for lack of actual knowledge under the EU Digital Services Act to evade liability. The court pointed out that Instagram and Facebook exercise substantial control over content distribution through algorithmic recommendation and advertising systems, meaning the platforms must bear corresponding responsibility for relevant content.

The case originated after the trademark and portrait of a German financial portal and its founder were misappropriated to run fraudulent investment advertisements. Data shows that nearly 260 non-compliant ads were reported by relevant parties in August 2024 alone, with some ads remaining online for as long as 62 days after reports were filed. The court ordered Meta to remove the relevant content, pay compensation for losses, and disclose details of the false advertisements as well as the corresponding ad revenue generated from them.

The ruling is not yet final and legally enforceable, and Meta stated it is evaluating whether to file an appeal.

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