Image source, ReutersAustralia has launched legal action against the parent company of Facebook, accusing it of allowing scam ads to target users with fake celebrity endorsements.
The tech giant knowingly hosted the ads for bogus cryptocurrencies and engaged in false, misleading or deceptive conduct.
Financial and other penalties could be imposed on the US company.
Meta has previously said it is committed to keeping scam artists off its platforms.
The Australian Competition and Consumer Commission says the ads in question used Facebook's technology to target susceptible users and feature fake quotes from Australian celebrities.
Former New South Wales premier Mike Baird, TV host David Koch and millionaire businessman Dick Smith were all used without permission.
The essence of the case is that Meta is responsible for the ads that it publishes on its platform.
According to the legal action filed in the Federal Court of Australia, Meta did this knowingly and failed to prevent the scam even after celebrities objected.
In one shocking instance, we are aware of a consumer who lost more than A$650,000 due to one of these scam being advertised as an investment opportunity on Facebook. Mr Sims said this is disgusting.
While Dr Forrest accuses the tech giant of breaking anti-money-laundering laws, the ACCC's case is about alleged breeches of consumer law or a separate regulatory act.
Meta made $115 billion in global advertising revenue in 2011.
All Rights Reserved © 2024
