Wednesday, October 5, 2022

Australia Consumer Watchdog Sues Meta for Crypto Ads Scam

Meta Platforms Inc, the parent company of Facebook as well as the Irish branch of the social media conglomerate has been issued a lawsuit by the Australian Competition and Consumer Commission (ACCC) for allegations of fraud owing to some crypto ads that were hosted on Facebook. In the media release shared by the regulator, a huge sum of money in dollars has been accrued by the perpetrators of this criminal act.

The alleged misconduct is a breach of the extant laws of Australian Consumer Law (ACL) and the Australian Securities and Investments Commission Act (ASIC Act).

Meta appears to have been proven guilty because the misleading crypto ad should have been investigated and verified before it saw the light of day on its platform, but the social media giant did nothing about it, giving the scammers the room to rob users of their money. The media release stated further that the firm has concerned itself “in false or misleading conduct and representations by the advertisers.”

The said ad is evidenced to have misrepresented revered Australian citizens without their consent. These citizens are David Koch, a TV host, Dick Smith, a celebrated entrepreneur in the country, and Mike Baird, New South Wales Premier.

The Aussie watchdog claimed that the crypto ads had misleading links that redirect users from Facebook to a site where a dubious media write-up is featured with quotes that were staged to have been said by the impersonated citizens to endorse the fake cryptocurrency platform.

Furthermore, the victims were then contacted to register on the scam crypto platform and were pressurized to patronize the link through persistent calls, persuading users to fraternize with the fraudulent cryptocurrency site.

It was stated in the media release that this is one of the many circumstances where Meta has endorsed a scam ad that misrepresents a public figure and several complaints and reports have been made, but Facebook often takes no proactive action to curb things. 

The negative results of the allegations against Meta are enormous, one of which according to the chief of the regulating body, Rod Sims is the situation of a victim that lost $650,000 to one of the scams.

All these proofs will make the ACCC stop at nothing to make Meta accountable for the allegations put forward and also bring justice to the fraud victims while pitching the ACCC as one of the regulatory bodies with recent enforcement action on a mainstream company.

Israel Love
Israel Love is a passionate writer that enjoys educating and inspiring people through his writing. This passion fuels the desire to simplify the complexities in the blockchain ecosystem, by providing viable information about the crypto space in such a way that makes it easy for anyone to understand. Israel love also has interests in Human Resource Management as he is a trained expert in HR.

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