Meta must independently prevent fake advertisements and imposter profiles on Facebook and Instagram prior to their publication in the future. That was the decision handed down by the Frankfurt Regional Court (Landgericht Frankfurt). With this ruling, the judiciary strengthens the rights of consumers and victims: platform operators can no longer fall back on merely removing content after receiving complaints from affected users when dealing with blatant online scams.
Finanzfluss Lawsuit Over Celebrity Impersonation
The proceedings were triggered by a lawsuit filed by founder Thomas Kehl and the platform »Finanzfluss«. Criminals had misappropriated the name and likeness of the financial YouTuber in ads on Facebook and Instagram to lure users into supposedly lucrative financial investments. Some of these ads were booked via a standard Meta advertising account.
The scheme aimed to redirect unsuspecting investors via ad links into closed groups on WhatsApp, the messaging service also owned by Meta. In these chat groups, the perpetrators promoted fraudulent investment schemes. Several victims contacted the financial portal after losing money.
Algorithms and Ad Revenue Establish Direct Liability
Meta defended itself citing standard past practice: the tech giant argued it was not liable for content as long as reported violations were removed following user notifications. The Frankfurt Regional Court rejected this reasoning. Anyone who distributes ads via their own algorithms and earns money from them exercises significant control and does not act as a neutral hosting provider.
From this, the judges derived direct liability for the corporation. Meta is now obligated to proactively filter out fake profiles and fraudulent advertisements relating to »Finanzfluss« before they go live. Failure to comply could result in fines of up to 250,000 euros per violation. Furthermore, Meta must disclose the revenue generated from the contested fake advertisements.
Context: A Signal Against the Game of Whack-a-Mole
The ruling sends a clear signal against the rampant wave of fraud across social platforms. Until now, tackling such scams resembled an ongoing game of whack-a-mole: once an ad was taken down following user complaints, the perpetrators would quickly publish a minimally modified version carrying the exact same content. Requiring platforms to catch known fraud patterns beforehand using technical filters could significantly raise the barrier for cybercriminals.
What Users Should Keep in Mind
Despite the ruling, users should remain fundamentally skeptical of ads promoting financial products and crypto investments on social media channels:
- Avoid WhatsApp groups: Reputable financial advisors and established media outlets never use sponsored ads to invite users into closed chat groups.
- Verify the source: Fraudulent ads that appear to come from celebrities or trusted media outlets almost never link to their authentic, verified websites.
- Report them anyway: Even though platforms are now held to a higher standard of accountability, fraudulent profiles and scam ads should still be reported via in-app reporting tools to maintain pressure on providers.
Quellen: Spiegel.de
