Meta fined $3.6 mln after losing lawsuit in Brazil

Meta is facing a fine of up to $3.62 million after losing a lawsuit filed by the Brazilian department store chain Havan. The retailer accused the social media giant of permitting paid advertisements that falsely used Havan's name to deceive consumers.

A Santa Catarina state judge ruled on Monday that Meta had 48 hours to block ads that Havan did not contract and which mention it or its owner, billionaire Luciano Hang. If Meta does not comply, fines can go up to 20 million reais.

In her ruling, Judge Joana Ribeiro said it was unacceptable for Meta to sell ads in an insecure way to sustain its business model.

In a statement on 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 profits from illicit ads without taking responsibility or verifying their legitimacy, leading fraud victims to sue the retailer.

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

The fraudulent ads led victims to pay for nonexistent products.