Meta faces $3.6m Brazil fine in Havan fake ad lawsuit

Meta Platforms faces up to $3.62 million in fines after losing a lawsuit by Brazilian department store chain Havan that accused the social media company of accepting paid ads that fraudulently use the retailer’s name to defraud consumers .

A Santa Catarina state judge ruled Monday that Meta had 48 hours to block ads that Havan has not contracted for that mention it or its owner, billionaire Luciano Hang. If Meta does not comply, fines can reach up to 20 million reais.

In her ruling, Judge Joana Ribeiro said it was unacceptable for Meta to sell advertising in an unsafe way to support its business model.

In a statement Monday, Havan called the decision “a landmark” in protecting the company’s and Hang’s rights.

Meta declined to comment. The company can appeal the decision.

In the lawsuit, Havan said Meta was profiting from the illegal ads without taking responsibility or verifying their legitimacy, prompting victims of the fraud to sue the retailer.

Earlier this year, Reuters’ fact-checking service in Brazil verified three fake Havan ads on Meta platforms that used Hang’s image. All showed signs of artificial intelligence being used to mimic the businessman’s voice.

Fraudulent ads caused victims to pay for non-existent products.

($1 = 5.5209 reais)

(Reporting by Barbosa; Editing by Richard Chang)