Late last week court documents revealed that Rebecca Swift will be taking Facebook and Zynga to court over scam advertisements that were embedded within applications such as Mafia Wars and YoVille. Zynga designed the Facebook applications and the social network hosted them.
Rebecca Swift claimed that the ads were “highly misleading.” But there is a federal law that gives web sites immunity for material that they did not create. The controversy started after Michael Arrington started a rant against the social network gaming companies. Arrington even posted a video of the Zynga CEO admitting that he “did every horrible thing in the book” to grow in revenues. Swift claims she lost $200 as a result of the scam advertisements.
The law that might make the case easy on Facebook and Zynga is the Communications Decency Act. Google used this law to protect themselves recently against a lawsuit that involved fraudulent ringtone advertisements appearing on their search results.