Celebrity Deepfakes in Investment Scams: Can Platform Operators Be Held Liable?

A Tokyo court ruled that Meta Platforms was not liable for damages when celebrity photos and names were misused in investment scams. Despite SNS investment fraud causing approximately 1.3 billion yen in damages annually, platform operators face unclear legal responsibilities for preventing such schemes.

Scale of Investment Fraud on SNS

Social media investment fraud caused 1.288 billion yen in damages in 2025. Scammers exploit celebrity photos and names to solicit investment funds, with perpetrators so numerous they remain largely unidentified.

Background and Ruling of the Lawsuit

Business executive Maezawa Yusaku sued Meta Platforms in Tokyo District Court on November 10, 2026. His complaint alleged that his likeness and name were used without authorization in fraudulent advertisements. Despite setting his claim at just 1 yen to establish platform responsibility rather than seek personal compensation, the court dismissed his case, ruling Meta not liable for damages.

Key Points of the Court's Decision

The judgment established the following:

Right Infringement Confirmed: The fraudulent advertisements violated Maezawa's portrait rights and publicity rights
Platform Liability Standard: Platforms face potential liability only when they unlawfully neglect or fail to address known rights violations
Meta's Defense: Meta removes nearly all fraudulent ads within two days, constituting adequate preventive measures

The Problem of Direct vs. Indirect Victims

A critical legal issue emerges: who is actually harmed? Maezawa suffered unauthorized use of his identity, while financial losses fell on fraud victims. The court determined Meta merely provided the advertising platform without direct responsibility.

Maezawa noted that social media content typically disappears within two days, meaning significant fraud can occur during that window despite rapid removal efforts.

Limitations of Internet Advertising Oversight

The sheer volume of internet advertisements makes complete prevention impossible, even with AI technology. Platform operators cannot realistically filter all illegal content before it reaches users.

User Responsibility When Using Media and Platforms

Unlike traditional media, social networks enable anyone to broadcast information. Users should:

Verify information before sharing
Avoid spreading rumors or scam content
Approach celebrity investment opportunities with skepticism
Take responsibility for their own online communication

Both media consumers and creators bear responsibility for preventing fraud and misinformation.