Australian Competition And Consumer Commission Sues Facebook For Failing To Protect Netizens In Cryptocurrency Ad Fraud

The ACCC accused Facebook of engaging in fake cryptocurrency ads. (photo: doc. pixabay)

JAKARTA - Australian trade competition watchdog has started legal proceedings, on Friday 18 March, against Facebook owner Meta Platforms Inc. They accused the social media company of engaging in false or misleading cryptocurrency advertising in the country.

Meta has published ads featuring "leading Australian public figures" promoting cryptocurrency investments or money-making schemes. But according to the regulator, the ad is a "scam" that may have misled users into believing it.

"It is alleged that Meta is aware of cryptocurrency scam advertisements with celebrity endorsements being displayed on Facebook. However they are not taking sufficient steps to address the issue," the Australian Competition & Consumer Commission (ACCC) said.

Regulators are seeking declarations, orders, penalties, fees and other orders from the courts. Meta did not immediately respond to a request for comment from Reuters, on the allegations.

The regulator said Facebook users were redirected to "fake media articles" that included quotes from public figures who support cryptocurrencies or money-making schemes. The ad also asks netzine to register and is further compelled by scammers to deposit funds in a bogus scheme.

"We suspect that Meta technology allows these ads to be targeted to the users who are most likely to engage with them," said ACCC Chairman Rod Sims.

"Meta has been reassuring its users that they will detect and prevent spam and promote security on Facebook. But they have failed to prevent the publication of cryptocurrency scam ads with the support of other similar celebrities," added Sims.