Australia Sues Facebook Over Scam Advertising

Australia has a challenging relationship with social media and has a history with both Google and Facebook over protecting local journalism and national news outlets.

Now, Facebook owner Meta has been sued by Australia’s competition watchdog for engaging in "false, misleading or deceptive conduct" by knowingly hosting the ads for bogus cryptocurrencies, the regulator said.

The Australian regulator is not alone in expressing concerns that the social media giant has failed to prevent scammers using its platform to promote fake ads with celebrities supposedly endorsing misleading products.

According to the commission, the adverts featured well-known Australians, including former New South Wales premier Mike Baird and businessman Dick Smith. But the high-profile personalities featured in the ads had never approved or endorsed them, it said.

Meta could face financial and other penalties. Meta vowed to defend itself, saying in a statement that it sought to stop scam ads by using technology to detect and block them. "We don't want ads seeking to scam people out of money or mislead people on Facebook, they violate our policies and are not good for our community," a Meta spokesperson said.

The Australian Competition and Consumer Commission (ACCC) says the ads in question used Facebook's algorithms to target susceptible users and featured bogus quotes by Australian celebrities.

Identities used without permission included former New South Wales Premier Mike Baird, prominent TV host David Koch and millionaire entrepreneur Dick Smith. "The essence of our case is that Meta is responsible for these ads that it publishes on its platform," ACCC chairman Rod Sims said in a statement on Friday. 

The legal action, filed in the Federal Court of Australia, alleges Meta did this knowingly and failed to prevent the scams even after objections were raised by celebrities. "In one shocking instance, we are aware of a consumer who lost more than A$650,000 (£360,000; $480,000) due to one of these scams being falsely advertised as an investment opportunity on Facebook. This is disgraceful," Mr Sims said.

Recently Andrew Forrest, a billionaire in Australia started a criminal case against Meta over fake ads that used his image. While Dr Forrest accuses the tech giant of breaking anti-money laundering laws, Meta, which also owns Instagram and Whatsapp, made $115bn in global advertising revenue in 2021.

BBC:    The Paradise:     Bitcoin.com:     France24:    The Punch:   The Conversation:     

You Might Also Read: 

Facebook To Pay $90m Penalty For Tracking Users:
 

« Rated Cybersecurity Software & Tools
WEBINAR: How To Build A Successful Zero Trust Strategy For Data Analytics »

Infosecurity Europe
CyberSecurity Jobsite
Perimeter 81

Directory of Suppliers

The PC Support Group

The PC Support Group

A partnership with The PC Support Group delivers improved productivity, reduced costs and protects your business through exceptional IT, telecoms and cybersecurity services.

BackupVault

BackupVault

BackupVault is a leading provider of automatic cloud backup and critical data protection against ransomware, insider attacks and hackers for businesses and organisations worldwide.

MIRACL

MIRACL

MIRACL provides the world’s only single step Multi-Factor Authentication (MFA) which can replace passwords on 100% of mobiles, desktops or even Smart TVs.

Clayden Law

Clayden Law

Clayden Law advise global businesses that buy and sell technology products and services. We are experts in information technology, data privacy and cybersecurity law.

Alvacomm

Alvacomm

Alvacomm offers holistic VIP cybersecurity services, providing comprehensive protection against cyber threats. Our solutions include risk assessment, threat detection, incident response.

Splunk

Splunk

Splunk provide real-time Security Information & Event Management solutions for Enterprise Networks, Cloud and small-scale IT environments

Garland Technology

Garland Technology

Garland Technology specializes in network access points (TAPs) for 100% visibility allowing you to see every bit, byte, and packet flowing through your network.

UMBRA

UMBRA

UMBRA is solely concerned with protecting governments against Nation State attacks. We are not a consumer or enterprise company.

Measured Insurance

Measured Insurance

Measured Insurance are bridging the gap between technology and Insurance using AI-Powered analytics that track clients’ exposure in real time to create smarter insurance products.

Marlabs

Marlabs

Marlabs is a Digital Technology Solutions company that helps companies adopt digital transformation using a comprehensive framework including Digital Automation, Enterprise Analytics and Security.

Cyolo

Cyolo

Cyolo’s Secure Access Service Edge (SASE) platform securely connects onsite and remote users to authorized assets, in the organizational network, cloud or IoT environments and even offline networks.

Securix

Securix

SECURIX AG delivers holistic IT security solutions that are tailored to the specific challenges and requirements of your company.

Tetrate.io

Tetrate.io

Tetrate Service Bridge provides enterprises with a consistent, unified way to connect and secure services across an entire mesh-managed environment.

GeoEdge

GeoEdge

GeoEdge is the premier provider of ad security and quality solutions for the online and mobile advertising ecosystem.

Trace3

Trace3

Trace3 is a pioneer in business transformation solutions, empowering organizations to keep pace with the rapid changes in IT innovations and maximize organizational health.

Incognia

Incognia

Incognia have created a ubiquitous private identity based on location behavior, that enables a personalized frictionless experience with mobile apps and connected devices.

Wadilona Cyber Securities

Wadilona Cyber Securities

Wadilona Cyber Securities' sole aim is to bring and secure Information and Communications Technology (ICT) to and work for humans in its simplest terms.

Redington

Redington

Redington offer products and services in solution areas including digital transformation, hybrid infrastructure and cybersecurity.

Incyber

Incyber

Incyber is a fully integrated network and cybersecurity solutions provider contracted to safeguard public and private enterprise, high value data and sensitive industries.

Center for Cyber Security Studies & Research (CFCS2R)

Center for Cyber Security Studies & Research (CFCS2R)

CFCS2R's mission is to empower individuals, organizations, and governments with the knowledge and tools necessary to protect against cyber threats.

ReformIT

ReformIT

ReformIT is a Managed IT Service and Security provider with many years experience helping companies find the right IT solutions to meet the needs of their businesses.