Originally published on: August 15, 2024
Australia’s competition watchdog, the Australian Competition and Consumer Commission (ACCC), has shed light on a disturbing trend within the cryptocurrency advertising sphere on Facebook. The ACCC’s preliminary research reveals a staggering 58% of crypto ads on the social media platform either flout Meta’s policies or are outright scams.
Legal Battle Unfolds: ACCC vs. Meta
In a move that underscores the severity of the issue, the ACCC has taken Meta, the parent company of Facebook, to court over allegations of facilitating celebrity crypto scam ads on the platform. While a court date is pending, the ACCC’s latest filing posits that a significant portion of crypto ads reviewed during their analysis contravene Meta’s Advertising Policies or are linked to fraudulent activities.
Celebrity Endorsements and Monetary Losses
The deceptive crypto ads in question leverage the images of prominent Australians, including Dick Smith, James Packer, Chris Hemsworth, Mel Gibson, Nicole Kidman, Russell Crowe, and Mike Baird, to peddle investment scams. Although exact monetary losses have not been specified, data from the Australian Government’s Scamwatch reveals that investment scams remain a prevalent financial threat to Australians.
Rampant Scams and Ongoing Investigations
During its investigation, the ACCC identified 600 suspect ads, with a particular focus on 234 ads associated with celebrity scams. Moreover, the watchdog hints at the likelihood of uncovering additional instances of fraudulent activities tied to public figures in the course of the case’s discovery process.
Meta’s Response and Alleged Inaction
While Meta contends that it removes individual scam ads upon receiving complaints and occasionally bans related accounts, the company continues to display similar ads featuring the same celebrities or public figures, thereby profiting from their proliferation. The ACCC asserts that Meta has been cognizant of deceptive crypto ad practices on its platform since at least January 2018.
Enforcing Compliance and Safeguarding Users
Despite Meta’s claims of investing in anti-scam measures and deleting fake accounts, the ACCC argues that the tech giant possesses the means to issue warnings on suspicious ads to caution users. The watchdog maintains that Meta could have taken proactive steps to mitigate the proliferation of deceptive crypto advertisements.
Looking Ahead: Battling the Shadows of Cryptocurrency Scams
The prevalence of crypto scams on Facebook underscores the critical need for enhanced vigilance and regulatory oversight within the digital advertising realm. As the legal battle between the ACCC and Meta unfolds, the spotlight remains on fortifying consumer protection measures and curbing fraudulent practices in the cryptocurrency advertising landscape.
