Meta Platforms is facing a potential fine of up to $3.62 million following a lawsuit lost to Brazilian department store chain Havan, which accused the social media giant of accepting paid advertisements that deceitfully utilized the retailer's name to mislead consumers.
A judge in Santa Catarina state mandated on Monday that Meta has 48 hours to disable ads that Havan did not authorize and that reference either the company or its owner, billionaire Luciano Hang. Failure to comply could result in fines escalating to 20 million reais.
Judge Joana Ribeiro's decision highlighted the inadmissibility of Meta's practice of selling ads in a risky manner to support its business model. Havan expressed in a statement that the ruling marks a significant step in safeguarding the rights of the company and Hang.
Meta has chosen not to comment on the matter and retains the option to appeal the ruling. Havan's lawsuit contended that Meta benefits from illegal ads without assuming responsibility or ensuring their authenticity, causing victims to file lawsuits against the retailer.
Earlier this year, Reuters' fact-checking service in Brazil uncovered three deceptive Havan ads on Meta's platforms that featured Hang's image, all of which exhibited signs of artificial intelligence being used to mimic the businessman's voice. These fraudulent ads prompted victims to pay for products that did not exist.
