Australian Billionaire Forrest Challenges Meta's Section 230 Defense Over Scam Ads Using His Image

Gate News message, April 17 — Australian billionaire and mining executive Andrew Forrest is challenging Meta in court, asking a judge to rule that the platform cannot use Section 230 protections to avoid liability for deceptive Facebook ads that used his image to promote cryptocurrency and financial scams. According to the suit, thousands of paid ads have used Forrest's likeness since 2019, with Meta's ad tools helping to optimize, personalize, and distribute the fraudulent content.

Meta argues that advertisers created the ads, not the company, and that it took reasonable steps to preserve relevant data. However, a federal judge found a factual dispute over Meta's role, stating that if Meta's ad-creation and optimization tools helped produce the allegedly illegal content, Section 230 protections may not apply at the motion-to-dismiss stage. The judge allowed Forrest's claims, including negligence and misappropriation, to proceed, with a ruling expected in the coming weeks.

The case is part of a broader legal strategy to narrow Section 230 defenses by targeting platform design and systems rather than treating platforms as passive publishers. Other plaintiffs are now citing this ruling in similar cases involving Meta's ad tools, raising concerns that platforms could face significantly increased liability for third-party advertisements they help optimize or distribute.