Meta (NASDAQ:META) slipped 0.30% on Thursday as it filed suit in Hong Kong against Joy Timeline HK Limited, the parent of Crush AI, aiming to block nudify apps that generate nonconsensual nude or explicit images from advertising on Facebook, Instagram, Messenger and Threads. The lawsuit targets Joy Timeline's repeated efforts to evade Meta's ad-review filters after hundreds of ads were removed for policy violations, underscoring Meta's hard line on intimate-image abuse. According to investigations, Crush AI ran over 8,000 ads across Meta platforms in the first two weeks of 2025many cloaked in innocuous imageryand funneled roughly 90% of its site traffic via those ads before being flagged by watchdogs. Meta alleges the Hong Kongbased company spun up dozens of advertiser accounts and swapped domains to dodge detection, prompting today's legal escalation. The suit seeks an injunction to bar Joy Timeline from placing any future ads on Meta's services.
Beyond legal action, Meta is rolling out upgraded ad-detection tools and sharing signals on offending URLs with other tech firms through the Tech Coalition's Lantern program, aiming to shut down nudify apps industry-wide. The company expanded its internal review termsadding new safety-related keywords, phrases and emojisto more effectively trap disguised ads. Meta says it removed thousands of violating ads, deleted associated pages and blocked countless URLs, but notes that bad actors constantly evolve their tactics. Investors should note that heightened regulatory and legal scrutiny on content moderation could translate into higher compliance costs and ongoing tech investments, even as Meta pushes deeper into AI-driven ad safety. This article first appeared on GuruFocus.
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