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Australian competition watchdog sues Facebook parent Meta for failing to remove misleading crypto ads

Ads are part of the revenue of Meta, owner of Facebook. However, the same has now landed the company in hot waters as it is being sued by the Australian Competition and Consumer Commission (ACCC). Australia’s competition watchdog alleged that it misled its users and failed to prevent fraudulent advertisements featuring personalities from being taken down.

The advertisements in question endorsed investments in cryptocurrencies or lucrative schemes, and Meta failed to remove them. Keeping adverts on Facebook, the popular social media platform, had the potential to mislead users into thinking they were being promoted by prominent Australians.

Some of the personalities included businessman Dick Smith, former NSW Premier Mike Baird and TV presenter David Koch, however, they never endorsed or endorsed them.

It is also alleged that Facebook “aids and abets or was knowingly concerned with false or misleading conduct and representations by advertisers”, and Meta engaged in what it called false, misleading conduct. or misleading.

According to ACCC President Rod Sims, Meta was aware of the fraudulent advertisements on Facebook, but did not take enough action to counter them. “The essence of our case is that Meta is liable for those advertisements it posts on its platform,” he said. It also benefits the business – it allows advertisers to target users who are most likely to click on the link in an ad, which is possible using Facebook’s algorithms. Landing page visits from ads generate substantial revenue for Facebook, and by extension, Meta.

Digging deeper into the ads, we find that they contained links leading Facebook users to news articles, which included quotes attributed to public figures in the ads. These articles were of course false and invited users to register. Later, they were contacted by scammers who managed to convince the users to deposit funds into the schemes. A customer lost over $4,80,000 to one of these scams.

This is not the first instance of such an occurrence, and these ads have continued to persist on Facebook even after public figures around the world complained that their names and images had been used in similar ads without their consent. .

Meta defended himself by saying he would review the ACCC’s latest filing and intended to defend the proceedings. Ads that scam people or mislead users have violated its policies, and it uses technology to detect and block these ads. He added that he has been cooperating with the ACCC’s investigation into the matter to date.

Australian competition watchdog sues Facebook parent Meta for failing to remove misleading crypto ads

Source link Australian competition watchdog sues Facebook parent Meta for failing to remove misleading crypto ads

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