Meta Pushes Court To Reject Class-Action Over Inflated Ad Metrics

Meta Platforms, formerly known as Facebook, is facing a renewed legal battle over inflated ad metrics, as the company seeks to prevent advertisers from proceeding with a class-action fraud lawsuit.

Meta has argued that the dispute is not suitable for class-action treatment, as the platform’s advertisers were shown different estimates about the potential reach of their ads, with a five-fold range of alleged inflation.

The lawsuit dates back to August 2018, when a business owner alleged that Facebook induced advertisers to purchase more ads and pay more for them by overstating the number of users who might see the ads. Lead plaintiffs DZ Reserve and Max Martialis will now pursue the case at the 9th Circuit Court of Appeals.

The case has been closely watched by industry groups, including Digital Content Next, which has argued that Facebook’s potential reach metric is a fundamental metric that is material to every advertising purchase, and that inflation of that metric distorts advertising markets to the detriment of advertisers and publishers.

About Meta

“Meta platform” typically refers to the collection of platforms and products developed by Facebook, Inc., which rebranded itself as Meta in October 2021. The Meta platform includes Facebook, Instagram, WhatsApp, Oculus, and other products and services.
The company’s rebranding as Meta was announced alongside the launch of its new focus on the Metaverse, a virtual shared space where people can interact with each other and with digital objects in a 3D environment. Meta has stated that it aims to build the infrastructure for the Metaverse and that this will be a major focus for the company going forward.
It should be noted that the term “meta platform” could also refer more generally to a platform that is designed to host other platforms or products. In this sense, a meta platform would be a platform that provides a framework or infrastructure for other platforms to be built upon or integrated with.

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