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Australia sues Meta over scam ads

  • By Al Mayadeen Net
  • Source: Agencies
  • 18 Mar 2022 10:46
2 Min Read

Australia's consumer protection commission confirmed it had started Federal Court proceedings against Meta for breach of consumer or securities laws.

  • x
  • Australia's consumer protection commission confirmed it had started Federal Court proceedings against Meta Platforms.
    Federal Court proceedings against Meta Platforms ongoing

Australia announced Friday it is suing Facebook owner Meta over scam adverts for cryptocurrency schemes that falsely claimed to be endorsed by prominent figures.

Australia's consumer protection commission confirmed it had started Federal Court proceedings against Meta Platforms for "false, misleading or deceptive conduct" in breach of consumer or securities laws.

The commission accused Meta of failing to do enough to stop scam ads for cryptocurrency or money-making schemes, even after being alerted by celebrities who had been misrepresented by similar ads published on Facebook.

Meta sought to stop scam ads using technology

For its part, Meta vowed to defend itself, claiming in a statement that it sought to stop scam ads by using technology to detect and block them. 

"We don't want ads seeking to scam people out of money or mislead people on Facebook -- they violate our policies and are not good for our community," a Meta spokesperson mentioned.

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The social media giant said it had cooperated with the Australian Competition and Consumer Commission's investigation.

Scam ads featured well-known Australians

According to the commission, the ads featured well-known Australians, including former New South Wales premier Mike Baird and businessman Dick Smith.

But the high-profile personalities featured in the ads had never approved or endorsed them, it noted.

"Apart from resulting in untold losses to consumers, these ads also damage the reputation of the public figures falsely associated with the ads," highlighted the commission's chair, Rod Sims.

"Meta failed to take sufficient steps to stop fake ads featuring public figures, even after those public figures reported to Meta that their name and image were being featured in celebrity endorsement cryptocurrency scam ads," he indicated.

One consumer lost more than US$480,000

The commission said it was aware of one consumer who had lost more than Aus$650,000 (US$480,000) in one of the scams being falsely advertised as an investment opportunity on Facebook.

"This is disgraceful," Sims expressed.

The consumer protection authority said it was seeking orders from the court including injunctions, penalties, and the payment of legal costs.

  • Facebook
  • Australia
  • Meta
  • New South Wales

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