Misleading ad implicates Facebook in Australian court
The Australian Competition Authority has taken Meta to court for allowing misleading advertising about cryptocurrencies through Facebook, a test case for the parent company's liability for harming consumer behaviour on the social media platform.
The Australian Competition and Consumer Commission said the company had breached consumer and investment laws. The US company also supports and encourages false or misleading conduct and representations.
The regulator’s legal action follows a separate case brought by Andrew Forrest, who sued Meta this year because his images were used to promote cryptocurrency programs without his consent.
Additionally, the alleged scam began in 2019 and linked fake media articles via Facebook using photos of Australian celebrities urging consumers to sign up for cryptocurrency schemes. Facebook users are under a lot of pressure when it comes to sales tactics.
The casualties were heavy. One person was defrauded of spending A$650,000 (US$477,000).
The ACCC said Meta generated significant revenue by associating Facebook with fake media reports, and its technology allowed scammers to target consumers most likely to interact with the ads.