Growing scams call for stricter online rules

Japan should adopt a new bill to impose stricter online rules on companies like Metato be able to combat scams on social networks.

The country's lawmakers are demanding that Meta's local unit react more quickly as they grapple with a growing number of online ads that use celebrity images to scam people. Former Digital Transformation Minister Takuya Hirai said in a recent interview that a proposal to summon Meta CEO Mark Zuckerbergto testify before the Diet is under consideration.

Hirai complained that Facebook is being overwhelmed by a plethora of false ads in Japan, describing the company's efforts to address the problem as inadequate and calling the whole situation "unacceptable."

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The 66-year-old lawmaker said his group would take initiatives to work closely with the Liberal Democratic Party and government officials to tighten oversight of the activities of major American technology companies in Japan. The plan includes determining detailed policy options by the end of the current parliamentary session in June. In addition, Hirai proposed temporarily halting all advertising on Facebook until the company finds more effective ways to combat scams.

The increasing incidence of fraud has sparked strong reactions in the economy of a country with an impressive savings rate of almost 30%. Prominent business figures such as Yusaku Maezawa and Takafumi Horie, who have been victims of fraud, have publicly denounced Meta for its negligence, demanding stricter regulations.

This week, four lawsuits were filed against Meta Japan, seeking damages totaling 23 million yen ($150,000).

The Menlo Park, California-based company said it has invested heavily in both staff and advanced artificial intelligence to identify and remove inappropriate ads from its platform. A Meta Japan spokesperson did not respond to a request for comment.

Regulators around the world are trying to impose restrictions on large companies that control a growing number of critical technologies. Japan's Fair Trade Commission has taken the lead in its first antitrust action, targeting Google, Alphabet Inc., for restrictions that hindered competitive ability.

See also: What are the most common Facebook scams?

At the same time, Prime Minister Fumio Kishida approved a bill on Friday that would impose fines on larger technology companies that abuse their influence to block the competitive presence of smartphone from rival firms.

Source: bnnbloomberg