Meta Accused of Profiting from Scam Crypto Ads on Facebook

Australia's consumer regulator, the Australian Competition and Consumer Commission (ACCC), has revealed that over half of the cryptocurrency-related advertisements on Facebook are either scams or in violation of Meta's advertising policies. In a recent court ruling, the ACCC stated that since January 2018, Meta has been aware of the misleading practices associated with a significant number of these ads. A preliminary analysis indicated that 58% of the reviewed ads and their landing pages did not comply with Meta's guidelines. The court proceedings highlighted that numerous public figures, including celebrities and well-known personalities, have been falsely used in these advertisements to lend credibility to the scams. The ACCC initially identified 600 ads for scrutiny but is now concentrating on 234 specific cases. The regulator claims that Meta has not implemented adequate safeguards to mitigate the prevalence of these deceptive ads, despite having the technical capability to issue warnings about the misleading endorsements. In response, a Meta spokesperson acknowledged the complexity of the scam issue, emphasizing the company's commitment to combating fraudulent activities on its platform. Meta has taken steps such as suspending accounts and implementing new verification processes for advertisers. Between January 2023 and February 2024, the company reviewed 433 cases reported through the ACCC's scam reporting channel, all of which were found to be in violation and subsequently removed. A hearing date for the ongoing case has yet to be established.