Facebook Owners Sued By Australia Watchdog For Running Scam Crypto Ads
Australia’s competition & consumer commission (ACCC) has taken legal actions against Facebook (Meta) owners, including Mark Zuckerberg. They alleged that the social media site approved a scam crypto ad targeting Aussies to run on its platform.
ACCC’s Stance On The Matter
The ACCC alleged that the ads faked approval of its offering by using the quotes and pictures of well-known members of the Australian society, especially popular TV personalities, entrepreneurs, and politicians.
The Aussie regulator accused Facebook of aiding and abetting misleading information, representing a breach of Australia’s Consumer and Investment regulations. This new lawsuit is the second time Facebook will be facing lawsuit actions from Australia. Last month, Andy Forrest (a popular crypto-miner based in Australia) sued Facebook for approving ads promoting crypto scams using his picture.
ACCC chief, Rod Sims, opined that “the primary basis of our case is that any platform that runs (whether Meta, Twitter or any other platform) would need to take responsibility for any fallout from such ads.” Sims further said, “we are aware that Meta knew those claims weren’t true, which should have them think that those crypto ads should be scams. But, they allowed the ads to run without performing any due diligence.”
Taking Responsibility For Their Actions
The scammers who have been running the ad for nearly three years usually use intense pressure selling techniques to entice their potential victims. Sims claimed that there are no verifiable proof of the exact amount those fraudsters have earned, but one victim claimed that he lost $478K (AU$656K) to the scammers.
In their opinion, Meta claimed that the ads must have used the wrong landing page to pass their ad filter technology. But the company admitted that the ads were a gross violation of its ad policies. Meta further said it has fraud detection technologies to detect and block scam ads. However, Meta stated that it would cooperate fully with any investigation conducted by ACCC but didn’t disclose details about its cooperation since the matter is now in court.
The Rise In Crypto Scam Levels
A representative of the company who spoke on anonymity said, “we have alerted our defense counsel and will be reviewing the ACCC’s legal filing in due course.” Nonetheless, many financial regulators have repeatedly warned the general public about crypto investments, stating that investors should be wary of being enticed by unfathomable returns on their investments. Any crypto firm claiming to give unreasonable ROI within a short period is most likely a scam.
Australian entrepreneur Dick Smith, whose image featured in one of the said ads, told the Guardian Australia that he had wanted to sue Meta two years ago. But he wasn’t sure he could win the case against the social media behemoth. According to him, “I do not have the financial might to sue them. Plus, I would have to spend a fortune to make an attempt while they can afford to throw money at the case and win, which would be a big loss.”
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