The Australian Competition and Consumer Commission has filed a lawsuit against Meta, formerly Facebook, for “publishing scam advertisements featuring prominent Australian public figures.” The regulator said, “The essence of our case is that Meta is responsible for these ads that it publishes on its platform.”
Meta sued for posting fraudulent cryptocurrency ads
The Australian Competition and Consumer Commission (ACCC) announced on Friday that it has filed legal action against Meta Platforms Inc. (formerly Facebook) and Meta Platforms Ireland Ltd.
Australia’s competition regulator alleges that the companies “engaged in false, misleading or deceptive conduct by publishing scam advertisements featuring prominent Australian public figures” on Facebook.
The ACCC alleges that Meta’s conduct “was in breach of the Australian Consumer Law (ACL) or the Australian Securities and Investments Act (ASIC Act).” Additionally, the regulator noted:
It is also alleged that Meta aided and abetted or was knowingly concerned in false or misleading conduct and representations by the advertisers.
The ACCC explained that the advertisements “promote investment in cryptocurrencies or lucrative schemes”. They featured well-known people, such as “businessman Dick Smith, TV presenter David Koch and former NSW Premier Mike Baird”, the ACCC noted, adding that users of Facebook were led to believe that these scams were genuinely associated with these celebrities.
ACCC Chair Rod Sims said:
The essence of our case is that Meta is responsible for these ads that it publishes on its platform.
The competition regulator said Meta was aware of the fraudulent cryptocurrency ads on Facebook but failed to take enough action to address the issue even after the company received complaints from celebrities whose names and images have been used without consent.
The ACCC is seeking “declarations, injunctions, penalties, costs and other orders,” the regulator detailed.
