The consumer watchdog has launched legal action in the Federal Court against Facebook owner Meta for publishing scam cryptocurrency ads featuring well-known Australians.
People featured in the fake ads, who had never approved or endorsed them, included former NSW premier Mike Baird, businessman Dick Smith, TV presenter David Koch and mining magnate Andrew “Twiggy” Forrest.
ACCC chairman Rod Sim says the agency will argue that Meta is responsible for the ads it publishes on its platform.Credit:Alex Ellinghausen
The Australian Competition and Consumer Commission alleges that ads that promoted investment in cryptocurrency or money-making schemes were likely to mislead Facebook users into believing the advertised schemes were associated with the people featured in the scam ads.
The ACCC said it knew of one consumer who lost more than $650,000 on a fake investment opportunity that was advertised on Facebook.
“This is disgraceful,” ACCC chairman Rod Sims said, calling the action world-leading and unprecedented.
The ads contained links that took Facebook users to a fake media article that included quotes attributed to the public figures claiming they endorsed a cryptocurrency or money-making scheme. Users were then invited to sign up and contacted by scammers who pressured consumers through repeated phone calls to deposit funds into the fake schemes.
The proceedings were launched against Facebook owner Meta Platforms, Inc, and Meta Platforms Ireland Limited, alleging they engaged in false, misleading or deceptive conduct.
The ACCC alleges this conduct was in breach of the Australian Consumer Law or the Australian Securities and Investments Commission Act. It also alleges that Meta aided and abetted or was knowingly concerned in false or misleading conduct and representations by the advertisers.
Mr Sims said the agency would argue that Meta is responsible for the ads it publishes on its platform.
ACCC takes Facebook owner to court over fake cryptocurrency ads
Source: Philippines Alive
