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FEATURE Crypto Weekly
CRYPTO SCARE AT ZUCKERBERG'S FACEBOOK A
fter facing severe allegations, Facebook is again at the center of a controversy concerning its crypto practices. Last October, the social media giant, which changed its name to Meta Platforms (FB) - Get Meta Platforms Inc. Class A Report, had difficulty managing its practices. In a lawsuit filed by the ACCC (Australian Competition and Consumer Commission), Meta is accused of participating in celebrity scams on Facebook, which have cost some Australians hundreds of thousands of dollars. Meta has advertised scams featuring prominent Australians. The ACCC alleges that this conduct violated the Australian Consumer Law (ACL) or the Australian Securities and Investments Commission Act (ASIC Act).
Ads associated with false celebrities. Meta is alleged to have assisted and abetted the advertisers' false, and misleading, conduct and representations. There may have been
March 2022 | Volume 20
a perception among Facebook users that advertisers were advertising on behalf of celebrities such as Dick Smith and David Koch. There was no official endorsement of the schemes by the individuals featured in the ads, and they were actual scams. According to the regulators, the ads contained fake media articles that included quotes from public figures in the ads endorsing cryptocurrency or money-making schemes. "After signing up, scammers contacted users and used high-pressure tactics, such as repeated phone calls, to entice them to deposit money into the scams." "We contend that Meta is responsible for these advertisements it publishes on its platform," ACCC Chair Rod Sims said. "Meta's business is to help advertisers target users most likely to click on the link in an ad and visit the landing page. Facebook generates substantial revenue from these visits to landing pages." "We know of one horrifying instance in which a consumer lost more than $650,000 after
one of these scams was falsely marketed as an investment opportunity on Facebook. This is disgraceful," Mr. Sims said. Meta is alleged to have known that the celebrity endorsement cryptocurrency scam ads were being displayed on Facebook but failed to resolve the issue. Facebook displayed the celebrity endorsement cryptocurrency scam ads despite complaints from celebrities around the world that their images and names had been used in similar advertising without their consent. The regulator also seeks costs and other orders in addition to penalties. TheStreet contacted Meta but didn't hear back. However, Meta has indicated it will defend the proceedings, as reported by other news outlets.
A 'malicious technique' has been alleged against Facebook. "We don't allow ads that seek to scam people out of money or mislead people on Facebook - they violate our policies and don't serve our community well. Technology
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