Written by Victor Pinheiro
SAO PAULO — Meta Platforms Inc. (NASDAQ: ) faces a fine of up to $3.62 million after losing a lawsuit brought by Brazilian supermarket chain Havana, which accused the social media company of accepting paid ads fraudulently using the company’s name to deceive consumers.
A Santa Catarina state judge ruled Monday that Meta has 48 hours to ban ads that Havane did not contract with and that mention it or its billionaire owner, Luciano Hang. If Meta fails to comply, it could face fines of up to 20 million reais.
In her ruling, Judge Joana Ribeiro said it was unacceptable for Meta to sell ads in an unsafe manner to support its business model.
In a statement Monday, Havan described the decision as a “milestone” in protecting the rights of the company and Hang.
Meta declined to comment on the decision, and the company may appeal the decision.
In the lawsuit, Havan said Meta profited from illicit ads without taking responsibility or verifying their legitimacy, prompting fraud victims to sue the retailer.
Earlier this year, Reuters fact-checking service in Brazil verified three fake ads for Havana on Meta platforms that used Hang’s image. All showed signs of using artificial intelligence to mimic the businessman’s voice.
Fraudulent ads led victims to pay for products that did not exist.
(1 dollar = 5.5209 riyals)