New showdown between Facebook and the Australian government, after the one on media compensation. Australia announced on Friday that it would sue Meta, owner of the social network, for allowing fraudulent advertisements to circulate on its platform concerning investment plans through cryptocurrencies.
Australia’s Consumer Protection Commission says it has brought proceedings in Federal Court against Meta Platforms for “false, misleading or deceptive conduct” in violation of consumer laws.
We’ve instituted Federal Court proceedings against Facebook owner Meta, alleging that they engaged in false, misleading or deceptive conduct by publishing scam advertisements featuring prominent Australian public figures. https://t.co/uiY9B5TCeU pic.twitter.com/HrweZeNKD9
— ACCC (@acccgovau) 17 mars 2022
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According to the commission, the advertisements touted cryptocurrency investment plans by falsely claiming they were endorsed by a number of well-known Australians, including former New South Wales Premier Mike Baird and businessman Dick Smith.
Facebook will cooperate with the investigation
The institution accuses Meta of not having made enough effort to put an end to the fraudulent advertisements, even after being alerted by the personalities falsely portrayed in them.
“In addition to causing incalculable losses to consumers, these ads also damage the reputations of public figures falsely associated with the ads,” said commission chairman Rod Sims. “Meta has not taken sufficient action to put an end” to these announcements.
Also read: Facebook ends ad targeting related to politics, health, and religion
The social media giant said it cooperated with the investigation. “We don’t want ads that seek to defraud money or mislead people on Facebook – they violate our policies and aren’t good for our community,” a Meta spokesperson said.
The commission said a consumer had lost more than 650,000 Australian dollars (432,831 euros) because of one of these advertisements. “It’s shameful,” Rod Sims said. The consumer protection authority said it was asking the court to order penalties and payment of court costs.
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