Home News Australian competition regulator takes Meta to court over fake crypto ads

Australian competition regulator takes Meta to court over fake crypto ads

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The Australian Competition and Consumer Commission (ACCC) has filed a Federal Court lawsuit alleging that Meta Platforms, Inc. (formerly Facebook) and its Irish branch engaged in “false, misleading, or deceptive conduct” by distributing phoney celebrity crypto advertisements.

In fact, some people have lost hundreds of thousands of dollars. As a result of the ad’s ingenious and long-running frauds.

According to previous reports, the Australian Competition and Consumer Commission (ACCC) has been examining Meta since the beginning of February for allegedly misleading crypto ads. On the other hand, Andrew Forrest, an Australian mining billionaire, sued the company for allegedly hosting adverts that deceived victims by using his identity.

In a notification issued earlier today, the ACCC stated that Meta “aided and abetted or was knowingly concerned in false or misleading conduct and statements by the marketers.”

The ACCC has uncovered unapproved or supported “scam” advertising involving well-known Australians. Such as entrepreneur Dick Smith, TV host David Koch, and former NSW Premier Mike Baird.

According to the regulator, the ads had suspicious links that directed users away from Facebook to a fake news article. Including statements attributed to a public figure apparently endorsing a “cryptocurrency or money-making strategy.”

High-pressure tactics

According to the announcement, “after signing up, clients were contacted by scammers who utilised high-pressure tactics. Such as repeated phone calls, to get them to deposit money into the phoney schemes.”

According to ACCC Chair Rod Sims, “Meta is accountable for these advertisements that it places on its platform”. And that the company stands to earn financially if they are not removed:

“Meta allows advertisers to target people who are most likely to click on a link in an ad and visit the ad’s landing page using Facebook algorithms. Ad visits to landing pages generate a lot of revenue for Facebook.”

“One client lost more than $650,000 as a result of one of these scams erroneously promoted as an investment opportunity on Facebook,” according to the report. “This is a disgrace,” he continued.

The ACCC is seeking “declarations, injunctions, penalties, fees and other orders”. Alleging that the company’s conduct is in contravention of the Australian Consumer Law (ACL). Or the Australian Securities and Investments Commission Act (ASIC Act).

Australians lost over $25 million to Bogus Crypto Investments

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