As Facebook is allowing scam ads to target users, the Australian regulatory body has decided to take legal action against Facebook’s parent company Meta. The authority claimed that these ads target users with fake celebrity endorsements.
The Australian Competition and Consumer Commission (ACCC) said that the tech giant is hosting the ads for bogus cryptocurrencies which cannot be tolerated ethically as well as legally. The regulator body also claimed that the social media platform has engaged in “false, misleading or deceptive conduct”. So, it is anticipated that the US company could face financial and other penalties in Australia.
Facebook is using a specific algorithm that can target susceptible users. These ads featured bogus quotes by Australian celebrities which are illegal. However, the tech company Meta has not commented on this issue. But it is always mentioned that it is committed to keeping scammers off its platforms.
The ads already used identity without permission. Some celebrities like millionaire entrepreneur Dick Smith, New South Wales Premier Mike Baird, and prominent TV host David Koch were used in these ads. ACCC chairman Rod Sims said, “The essence of our case is that Meta is responsible for these ads that it publishes on its platform.” Mr. Sims also said, “In one shocking instance, we are aware of a consumer who lost more than A$650,000 (£360,000; $480,000) due to one of these scams being falsely advertised as an investment opportunity on Facebook. This is disgraceful.”