- Over 50% of Facebook crypto ads violate Meta’s policies or involve scams.
- The ACCC is investigating Meta for allowing scam ads on its platform.
- Meta requires new advertisers to verify a phone number to reduce fake ads.
Australia’s concurrence watchdog has found a big problem with cryptocurrency ads on Facebook. The Australian Competition and Consumer Commission (ACCC) says that more than half of these ads either break Meta’s commercial rules or are scams. This finding is part of a larger look into Meta, Facebook’s parent company, and how it may be allowing these scams to happen.
Administrative Action Taken Against Meta
In 2022, the ACCC took Meta to court, accusing the company of helping scam ads to spread on Facebook. These ads often featured famous Australians like Dick Smith and Chris Hemsworth to promote fake cryptocurrency investments. The ACCC recently reported that about 58% of the reviewed crypto ads on Facebook violated Meta’s advertising rules or were scams. This case will decide how responsible Meta is for these misleading ads on its platform.
In response, Meta took steps to fight scam ads. Between January 2023 and January 2024, the company took action against many accounts involved in such activities. These accounts operated in different countries, including Australia. Meta explained that its services are usually just one part of a scam and that it does not control the entire process. To strengthen its defenses, Meta now requires new advertisers to verify a phone number before posting ads. This change was made in June 2024 to reduce the number of scam ads on Facebook.
Impact on Consumers and Regulatory Concerns
In 2024, Scamwatch, an Australian government group, reported that people lost over $13 million to investment scams on social media. This is part of a larger $134 million loss due to scams overall. These losses show how harmful these scams are to consumers.
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As the ACCC’s complaint against Meta continues, it could have a big impact on how social media sites are controlled in the future. What should be the responsibility of social media companies in stopping the spread of scams? The outcome of this case might set new rules for how these companies need to protect their users from fake content.
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