ACCC vs. Meta: A Battle Against Cryptocurrency Ad Scams

Australia's consumer watchdog has accused Facebook of facilitating rampant cryptocurrency ad scams. More than half of the ads inspected by the Australian Competition and Consumer Commission (ACCC) were found to be in violation of Meta’s policies or were outright scams, according to court proceedings.

The tech giant was subjected to legal scrutiny by the ACCC over celebrity scam ads in 2022 and it seems the situation has only escalated since. The regulator holds Meta culpable of false, deceptive advertising conduct, and of indirectly assisting the false conduct of advertisers. A shocking 58% of cryptocurrency advertisements analysed were found to be misleading or likely scams.

Public figures, including Chris Hemsworth and Nicole Kidman, were falsely employed in these ads to lure potential victims. The ACCC is further scrutinising over 600 ads, with a particular focus on 234 of them.

The Commission reproached Meta for its failure to implement effective safeguards to curb these scam ads. While Meta has been stopping individual ads and occasionally banning associated accounts following complaints, the company continues to show similar ads and earn revenue from them.

Responding to the allegations, a Meta spokesperson highlighted the complexity of scams and pledged continuous efforts to combat them. Modifications to the platform now require new advertisers to validate their account with a phone number. Yet, despite Meta's claimed actions against several accounts, losses from investment scams have skyrocketed to over $13 million in 2024.

The litigation against Meta awaits a court date.

- CyberBeat