Monday, October 22, 2012

Does Facebook Have A Problem With Ads For Counterfeit Merchandise?

Facebook is scheduled to release its earnings tomorrow.  Will Facebook meet or beat market expectations?  I don't want to speculate on its earnings report, but has Facebook's revenues been manipulated by ads for counterfeit merchandise?

According to CBS News, the company makes about $5 a year on each user.  Is this number inflated due to advertising revenue received from companies who are hawking counterfeit merchandise on Facebook?

Does Facebook have a Google pharma ad problem on its hand?  In 2011, Google agreed to pay a $500 million dollar fine to avoid prosecution due to displaying advertisements from Canadian pharmacies which illegally sold prescription drugs to American consumers.  An important question in the Google case was did it intentionally turn a blind eye to the matter?  Is Facebook intentionally turning a blind eye regarding advertising for counterfeit merchandise on its platform?

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