Summary:
- Regulatory Findings: The Australian Competition and Consumer Commission (ACCC) has found that 58% of crypto ads on Facebook either violate Meta’s advertising policies or are scams.
- Legal Action: In 2022, the ACCC took legal action against Meta, alleging that the company “aided and abetted” celebrity crypto scam ads on Facebook. The case is still ongoing.
- Celebrity Endorsements: The deceptive ads often feature prominent Australians, including actors and business leaders, using their likenesses without permission.
- Scam Spike: Australia has seen a surge in scams, with over $78 million lost to investment scams so far in 2024, and over 3,456 reports filed.
A recent analysis by Australia’s competition watchdog, the Australian Competition and Consumer Commission (ACCC), has revealed that over half of the crypto ads on Facebook either violate Meta’s advertising policies or are outright scams. According to preliminary research conducted by the ACCC, 58% of the crypto-related ads they reviewed were non-compliant, raising serious concerns about the prevalence of deceptive promotions on the platform.
The ACCC’s findings are part of a broader legal battle against Facebook’s parent company, Meta, which began in 2022. The ACCC alleges that Meta “aided and abetted” the spread of celebrity-endorsed crypto scam ads on Facebook, using the likenesses of well-known Australians such as Chris Hemsworth, Nicole Kidman, and Dick Smith without their consent.
The legal action is still pending, but the latest court filings underscore the ongoing issue. In 2024 alone, over 3,456 reports of investment scams have been made, resulting in losses exceeding $78 million. One particularly high-profile case involved Australian mining tycoon Andrew Forrest, who sued Meta after deep fake videos using his image were used in scam ads. Although the case was initially dismissed, a U.S. judge allowed it to proceed in June.
Australia has witnessed a significant rise in crypto-related scams, leading the Australian Transaction Reports and Analysis Centre (AUSTRAC) to classify cryptocurrencies as “high risk” in its 2024 Money Laundering National Risk Assessment. The Australian Financial Crimes Exchange reported that over $3 billion was lost to crypto scammers in 2023 alone, highlighting the growing need for stricter regulations and oversight in the crypto space.
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