Meta Challenges ACCC’s Claim on Facebook Crypto Ad Scams

TLDR

• The Australian Competition and Consumer Commission (ACCC) claimed in a court filing that 58% of crypto ads it reviewed on Facebook are scams.
• Meta denies this claim, stating the data is from 2018 and based on a limited sample size.
• Meta argues that the data is not representative of the current state of its platform.
• The company says it has implemented various measures to combat scam ads, including manual reviews, automated technology, and updated guidelines.
• Meta reports removing 631 million fake accounts and 436 million pieces of spam content from Facebook in Q1 2024.
• Several celebrities have taken legal action against Meta over crypto scam ads using their likeness without permission.

Meta, the parent company of Facebook, has strongly refuted claims made by the Australian Competition and Consumer Commission (ACCC) that over half of cryptocurrency advertisements on its platform are scams.

This dispute highlights the ongoing challenges social media platforms face in combating fraudulent content, particularly in the rapidly evolving cryptocurrency space.

The ACCC, as part of a 2022 lawsuit, recently filed a statement to federal court claiming that 58% of the crypto ads it reviewed on Facebook were scams. This allegation has put Meta’s ad review processes under scrutiny, raising questions about the effectiveness of the company’s efforts to protect users from fraudulent content.

However, Meta has pushed back against these claims, arguing that the data used by the ACCC is outdated and unrepresentative of the current state of its platform. A Meta spokesperson stated that the ACCC’s analysis relies on information from 2018 and is based on a “limited data set.” The company contends that it’s unlikely this data accurately represents the platform today, given the significant changes and improvements made to its ad review systems in recent years.

Meta emphasized its ongoing efforts to combat scam ads, outlining a multi-faceted approach that includes manual reviews, automated technology, and updated guidelines to ensure advertisers post legitimate content. The company has also opted into the Australian Online Scams Code (AOSC), demonstrating its commitment to addressing the issue of fraudulent advertisements.

To illustrate its progress, Meta provided statistics from the first quarter of 2024, reporting the removal of 631 million fake accounts and 436 million pieces of spam content from Facebook. Notably, 99.4% of fake accounts and 98.2% of spam content were actioned before users reported them, suggesting significant improvements in proactive detection and removal of fraudulent content.

Despite these efforts, the issue of scam ads, particularly those related to cryptocurrencies, remains a significant concern. The ACCC alleges that while Meta does take down individual ads once complaints are received and bans associated accounts, it continues to earn revenue from similar ads. This claim suggests that the problem may be more systemic than Meta’s current approach can address.

The controversy surrounding crypto scam ads on Facebook is not limited to Australia. Several high-profile individuals, including celebrities and public figures, have taken legal action against Meta over the unauthorized use of their likeness in fraudulent cryptocurrency advertisements. For instance, Australian mining tycoon Andrew Forrest filed a civil suit against Meta in California, claiming that Facebook’s advertising interface facilitated the development of scam ads.

Similarly, in Denmark and Japan, television hosts and scam victims have initiated legal proceedings related to unauthorized use of images in Facebook ads promoting fraudulent investment schemes. These cases underscore the global nature of the problem and the challenges social media platforms face in policing content across different jurisdictions.

Meta’s response to the ACCC’s claims emphasizes the company’s ongoing efforts to address the issue of scam ads.

However, the persistence of the problem, as evidenced by continued legal actions and regulatory scrutiny, suggests that more work may be needed to effectively combat fraudulent content on social media platforms.