Australian Watchdog Filed a Lawsuit Against Facebook Owner Meta Platforms

Australian Watchdog Filed a Lawsuit Against Facebook Owner Meta Platforms. 

The Australian Competition and Consumer Commission launched a lawsuit against Facebook owner Meta Platforms on Friday. They allege that the social media giant failed to prevent scammers from exploiting its platform to promote fraudulent ads starring celebrities.

The adverts encouraged cryptocurrency or money-making schemes. 

According to the Australian Competition and Consumer Commission, it may have caused Facebook users to believe celebrities promoted them.

According to the ACCC, Facebook “aided and abetted or was knowingly concerned in fraudulent or misleading behavior and representations by the advertisers,” according to the lawsuit filed in Federal Court.

“The essence of our argument is that Meta is liable for the advertisements it posts on its platform,” stated ACCC Chair Rod Sims. 

“It is alleged that Meta was aware that fraudulent ads were displayed on Facebook but did not take adequate actions to remedy the problem.”

Meta claimed that any adverts that defrauded consumers or misled users were against its principles. 

The firm used technology to detect and block such posts. It also said that it had “cooperated with the ACCC’s investigation into this subject.”

“We will evaluate the ACCC’s recent submission and expect to defend the proceedings,” a Meta representative said in an emailed statement, declining to say more because the case was still pending in court.

According to the ACCC, the adverts featured photographs of many Australian corporate executives, TV hosts, and politicians and links to phony media articles with statements ascribed to the individuals.

According to the authority, scammers contacted users who had joined to persuade them to deposit money into the phony schemes.

“We are aware of a consumer who has lost almost A$650,000 ($480,000) due to one of these scams,” Sims said.

Last month, Australian iron ore mogul Andrew Forrest, chairman of Fortescue Metals Group, filed a criminal complaint against Facebook for scam advertising that used his image to promote cryptocurrency schemes.

Financial fraud accusations are normally handled by the business regulator, the Australian Securities and Investments Commission (ASIC). 

However, the ACCC said it was given interim powers to initiate the complaint since it pursued financial penalties.

Facebook established a program earlier this week to help train Australian political candidates and influencers on cyber security to prevent the spread of potential misinformation during the country’s forthcoming federal election campaign.