A German Court Just Ruled Meta Liable for Scam Ads Its Algorithms Auction Onto Your Feed

A German court has held Meta liable for fake ads that used someone else's face and logo on Facebook and Instagram. The Frankfurt Regional Court ruling, dated September 16, 2026, case 2-06 O 234/25, covers scam ads that borrowed Finanzfluss branding and co-founder Thomas Kehl's image to push fake investment offers.

TechStartups and The Next Web both carried the decision. The court ordered Meta to stop the offending ads and to hand over information about them and the revenue they generated. Damages have not been set yet. Finanzfluss reported nearly 260 violations to Meta in August 2024 alone, the court said.

Meta argued it could rely on Digital Services Act hosting protections because it lacked knowledge of the illegal material. The court rejected that for ads. Meta decides when and in what order ads appear, uses algorithms to distribute content, and runs an automated advertising auction, so it is not a passive chronological host.

The judges cited a June European Court of Justice ruling. Reuters quoted a Meta spokesperson: "We respectfully disagree with this decision and are considering next steps." Meta says it detects and removes reported scam content with AI, advertiser verification, and facial recognition.

The ruling is first-instance and German. An appeal is still possible. The ads case is a separate docket from Meta's US states youth-safety settlement.

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