Regulator finds 58% of cryptocurrency ads on Facebook are scams or policy violations, prompting legal action against Meta.
The Australian Competition and Consumer Commission (ACCC) has raised serious concerns about the prevalence of scam cryptocurrency ads on Facebook. According to the ACCC, more than half of these ads are either scams or violate Meta's policies. This has led to legal action against Meta, the parent company of Facebook.
The ACCC conducted an analysis of cryptocurrency-related ads on Facebook and found that 58% of these ads were problematic. These ads often used unauthorized images of celebrities to promote scams, misleading users into thinking these public figures endorsed the products.
The ACCC alleges that Meta has engaged in misleading conduct by allowing these ads to be published and by aiding the advertisers' false conduct. The consumer regulator claims that despite Meta's efforts to remove individual ads and pages upon complaints, the company has not adopted sufficient safeguards to prevent or significantly reduce the prevalence of such ads.
Meta has responded to these allegations by stating that it continuously works to prevent scams on its platform. The company claims to have taken legal action against violators and introduced new measures for advertiser verification. Meta also emphasized that it removes violating ads and accounts as soon as they are identified.
For advertisers, this case serves as a reminder to adhere to platform policies and ensure that all promotional content is transparent and truthful. Implementing robust verification processes can also help in maintaining the integrity of advertising campaigns.
The ACCC's legal action against Meta underscores the ongoing challenges in regulating online advertisements, particularly in the rapidly evolving cryptocurrency space. Both users and advertisers must remain vigilant to navigate this complex landscape safely.
