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Friday, March 31, 2023

Australia Sues Facebook Over Epidemic of Scam Ads

Australia has filed a lawsuit against Meta, the parent company of Facebook, saying that it allowed fraudulent advertising to target users with phony celebrity endorsements.

According to a regulator, the internet giant participated in “false, misleading, or deceptive behavior” by knowingly displaying adverts for fraudulent cryptocurrency.

Financial and other penalties might be imposed on the US corporation.

Meta has yet to respond, but has previously stated that it is dedicated to preventing fraudsters from using its services.

The ads in issue, according to the Australian Competition and Consumer Commission (ACCC), exploited Facebook’s algorithms to target vulnerable consumers and contained phony comments from Australian celebrities.

Former New South Wales Premier Mike Baird, popular TV broadcaster David Koch, and rich entrepreneur Dick Smith were among the names used without permission.

The ACCC chairman Rod Sims said in a statement on Friday that “the heart of our argument is that Meta is liable for these adverts that it posts on its platform.”

Meta allegedly did this intentionally and failed to prevent the frauds despite celebrity concerns, according to the court case filed in Australia’s Federal Court.

“We know of one customer who lost almost A$650,000 (£360,000; $480,000) as a result of one of these frauds being falsely presented as an investment opportunity on Facebook. This is a deplorable situation “Mr. Sims explained.

Last month, Australian millionaire Andrew Forrest filed a criminal complaint against Meta for using his picture in fraudulent adverts.

While Dr. Forrest accuses Google of violating anti-money laundering regulations, the ACCC’s complaint involves suspected violations of consumer law or another regulatory act.

In 2021, Meta, which also owns Instagram and Whatsapp, generated $115 billion in worldwide advertising income.

Cedric Blackwater
Cedric Blackwater
Cedric is a journalist with over a decade of experience reporting on local US news, and touching on many global topics. He is currently the lead writer for Bulletin News.

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