Facebook’s main source of revenue — its “Sponsored” ads — has put it in the middle of a proposed class action lawsuit. An NFL merchandise retailer accused Facebook, its ad partner adSage, and a number of alleged knock-off goods sellers of false advertising in a complaint filed Monday.
New Mexico-based Krystal’s NFL Shoppe says Facebook displayed ads for seemingly authentic NFL products that were actually Chinese knock-offs.
“Nike NFL Jerseys $21” and other ads even appeared on Krystal’s Facebook page – leading people to believe Krystal’s sold the knock-offs, according to the complaint.
Krystal’s says in its suit that counterfeit goods makers are using both the credibility of legitimate merchandisers and Facebook itself to turn a profit. The company is suing on behalf of all makers of official NFL merchandise.
Facebook and adSage did not immediately respond to requests for comment on Tuesday.
These aren’t the first allegations of customers being targeted by websites selling fake jerseys.
The Immigration and Customs Enforcement (ICE) has already shut down 70 websites selling sports goods, which allegedly violated the Lanham trademark law, according to Deseret News.
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