The Australian Competition and Consumer Commission (ACCC) has filed a lawsuit against Meta, Facebook’s parent corporation, alleging that the business misled its users by permitting scam bitcoin ads depicting unknown celebrities to run on its social platforms.
The Australian Competition and Consumer Commission announced on Friday that the company’s marketing promised bitcoin investment opportunities and were linked to bogus articles that approved such schemes.
Celebrities such as Dick Smith and David Koch appeared in the advertisements, leading viewers to believe the advertising were affiliated with the individuals, despite the fact that the individuals never signed any such arrangement.
The ACCC’s Chair, Rod Sims, stated, “The essence of our case is that Meta is responsible for the ads that it publishes on its platform. It is alleged that Meta was aware that the celebrity endorsement cryptocurrency scam ads were being displayed on Facebook, but did not take sufficient steps to address the issue.”
The ACCC went on to say that the corporation “engaged in false, misleading or deceptive conduct,” which allowed the advertising to be targeted at the most susceptible customers. According to the agency, one victim lost almost $480,000 in the scam.
In a statement to Bloomberg, a Meta spokesperson based in Australia clarified “We don’t want ads seeking to scam people out of money or mislead people on Facebook — they violate our policies and are not good for our community. We will review the recent filing by the ACCC and intend to defend the proceedings.”
To read our blog on “After another whistleblower complaint, Meta is under fire,” click here.
