Australia sues Facebook-owner Meta over cryptocurrency scam

Australia has sued Meta for scam advertisements on cryptocurrency schemes. The govt agency in Australia has claimed that it has filed a case against Meta platforms due to “false, misleading or deceptive conduct”. The scam advertisement is in breach of consumer or securities laws, according to the agency. Also Read – Meta removes Ukrainian President Zelensky deepfake video: What are deepfakes, what are they used for?

According to a report by AFP, the Australian agency has claimed that Meta has failed to do enough to stop scam ads for cryptocurrency or money-making schemes. This happened even when the celebrities had warned Meta about their misrepresentation in ads published on Facebook. Also Read – Judge, jury, executioner: Facebook is trying to be everything, but why?

In a statement quoted by AFP, Meta spokesperson said, “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.” Meta claimed that it has cooperated with the Australian Competition and Consumer Commission’s investigation on the current issue. Also Read – WhatsApp introduces ‘Code Verify’, a browser extension to protect web users

The filing claims that some of the most prominent celebrities have been misrepresented in these ads. The filing also said that none of the ads were approved on endorsed by the celebrities in them.

The scams have led to the loss of money. According to the commission, one consumer lost more than AUD 6,50,000 (roughly over Rs 3.6 crore). The scam was being advertised as an investment opportunity on Facebook.

The AFP report quoted Rod Sims the commission’s chair saying, “Apart from resulting in untold losses to consumers, these ads also damage the reputation of the public figures falsely associated with the ads.”

“Meta failed to take sufficient steps to stop fake ads featuring public figures, even after those public figures reported to Meta that their name and image were being featured in celebrity endorsement cryptocurrency scam ads,” he said.

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