“It is a key part of Meta’s business to enable advertisers to target users who are most likely to click on the link in an ad to visit the ad’s landing page, using Facebook algorithms. Those visits to landing pages from ads generate substantial revenue for Facebook,” Mr Sims said.
The ACCC alleges that Meta was aware that the celebrity endorsement cryptocurrency scam ads were being displayed on Facebook but did not take sufficient steps to address the issue.
“Apart from resulting in untold losses to consumers, these ads also damage the reputation of the public figures falsely associated with the ads. Meta failed to take sufficient steps to stop fake ads featuring public figures, even after those public figures reported to Meta that their name and image were being featured in celebrity endorsement cryptocurrency scam ads,” Mr Sims said.
Mr Sims said the ACCC alleges that Meta technology allowed the ads to be targeted to users most likely to engage with them.
Meta had assured its users it would detect and prevent spam and promote safety on Facebook, “but it failed to prevent the publication of other similar celebrity endorsement cryptocurrency scam ads on its pages or warn users”.
“Meta should have been doing more to detect and then remove false or misleading ads on Facebook, to prevent consumers from falling victim to ruthless scammers,” Mr Sims said.
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