More than half of cryptocurrency-related ads on Facebook are scams or in violation of Meta’s advertising policies, according to Australia’s consumer regulator, the Australian Competition and Consumer Commission (ACCC). The ACCC took Meta to court over these deceptive ads in 2022. It accused the company of publishing misleading ads. These ads falsely used the likeness of celebrities to promote scams. The regulator argued that Meta had engaged in false and deceptive conduct. In addition to this, it also assisted advertisers in these practices. The court case showed that Meta knew that a large percentage of cryptocurrency ads on Facebook since at least January 2018 engaged in misleading promotional tactics. In a classification study conducted by the ACCC, it was discovered that 58% of the
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More than half of cryptocurrency-related ads on Facebook are scams or in violation of Meta’s advertising policies, according to Australia’s consumer regulator, the Australian Competition and Consumer Commission (ACCC). The ACCC took Meta to court over these deceptive ads in 2022. It accused the company of publishing misleading ads. These ads falsely used the likeness of celebrities to promote scams. The regulator argued that Meta had engaged in false and deceptive conduct. In addition to this, it also assisted advertisers in these practices.
The court case showed that Meta knew that a large percentage of cryptocurrency ads on Facebook since at least January 2018 engaged in misleading promotional tactics. In a classification study conducted by the ACCC, it was discovered that 58% of the cryptocurrency-related ads and the pages linked to these ads breached Meta’s provisions on advertising or were possibly involved in scams.
These fake ads tricked consumers by using pictures and names of popular personalities such as David Koch, Celeste Barber, Chris Hemsworth, Nicole Kidman, and Russell Crowe and offering scams. The ACCC initially had a list of 600 such ads but has narrowed down its list to 234 ads for the present legal cases.
ACCC Alleges Meta Profits from Scam Ads Despite Blocking Some Accounts
The ACCC claims that while Meta frequently pauses particular advertisers and blocks related accounts once concerns are raised, the business continues to display and monetize similar advertisers. The regulator has accused Meta of not doing enough to prevent or reduce the occurrence of these scams or showing that it cannot use its technical capabilities to do so.
Meta then defended itself, stating that scams are sophisticated and ever-changing in all sectors. However, a spokesman for the company said that Meta has been working to stop scams across its apps and has even removed fake accounts and taken new steps to verify advertisers. Meta also stressed that it blocked 691 million fake accounts in the fourth quarter of 2023, which is less compared to previous periods.
Despite these initiatives, investment scams advertised and shared on social platforms caused substantial losses, reaching over $13 million in 2024, according to Scamwatch. Recent developments of the ACCC against Meta also contribute to increased awareness of the need for more control and protection from scams online.