SÃO PAULO – Meta Platforms (META) has been hit with a potential fine of up to $3.62 million after losing a legal battle against Brazilian department store chain Havan. The retailer accused Meta of accepting paid advertisements that fraudulently used its name and the likeness of its owner, billionaire Luciano Hang, to deceive consumers.
On Monday, a judge in Santa Catarina state ruled that Meta has 48 hours to block any ads mentioning Havan or Hang that were not contracted by the retailer. Failure to comply could result in fines escalating to 20 million reais.
Judge Joana Ribeiro condemned Meta’s practices, stating that it is unacceptable for the company to sustain its business model by selling ads in an insecure manner. Havan, in a statement, hailed the decision as a “landmark” for protecting the rights of the company and its owner.
Meta declined to comment on the ruling and has the option to appeal the decision.
The lawsuit filed by Havan alleged that Meta profits from illicit ads without ensuring their legitimacy, leading defrauded consumers to take legal action against the retailer. Earlier this year, Reuters’ fact-checking service in Brazil identified three fraudulent ads on Meta’s platforms that used Hang’s image and appeared to employ artificial intelligence to mimic his voice. These fake ads led victims to pay for nonexistent products.
As of the latest exchange rate, $1 is equivalent to 5.5209 reais.
