$ 1,044.78 0.73%
$ 32.31 2.42%
$ 0.065372 2.50%
$ 4.55 0.75%
$ 19,008.55 1.36%
$ 214.93 0.72%

ACCC slams lawsuit on Meta over scam crypto ads


TL; DR Breakdown

  • ACCC hit Meta with a lawsuit
  • The case will be heard at a federal court
  • ACCC chairman laments Meta’s involvement in the scams

The Australian Competition and Consumer Commission has announced that it has officially slammed a lawsuit on Meta. The case, which will be heard at a federal court, alleges the role of Meta in the scam ads that are being published on its website. These scam ads, which often maliciously involve different celebrities, have made thousands lose their hard-earned money to criminals.

The case will be heard at a federal court

The issue emanates from a previous lawsuit slammed on the company by Andrew Forrest. After a while, the ACCC said that it is conducting a thorough investigation into the activities of Facebook over the said crimes. Forrest noted that he had faced much backlash over criminal ads carried out on his name, making investors lose money.

In its announcement, the ACCC pointed accusing fingers at Meta, noting that the firm was either in the know about the crimes or was aiding the criminals. The ACCC pointed at a long list of malicious advertisements on the Meta website in the name of prominent Australian figures like Dick Smith, Mike Baird, and David Koch, a TV presenter.

ACCC chairman bemoans Meta’s involvement in the scams

According to the ACCC, the modus operandi of the scams were to lure unsuspecting victims onto an entirely different site with testimonies from these public figures. After this, users would automatically sign up, and after a lot of convincing via phone calls, they would invest funds on the platform. Notably, most of these investments are made due to the fake endorsements by these celebrities.

According to a statement by the Chairman of the ACCC, Rod Sims, Meta is involved in these criminal acts because they are plastered across the company’s website. He also buttresses that the company could not remove the ads as it would cost them funds. Sims also mentioned that Meta had tailored algorithms to ensure that these ads eventually reach the audience they were meant for at a particular time.

This is because Facebook stood to gain when users eventually click on the links that will take them to the intended platform. According to records, a consumer has lost close to $650,000 in one of these scams. ACCC has said that the activities of Facebook have kicked against the laws stated in the Securities and Consumer laws of Australia.

Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

Related News

Hot Stories

ChainLink price analysis: LINK depreciates at $6.05 after bearish movement
Bitcoin, Binance Coin, Polygon, and Chainlink Daily Price Analyses – 3 July Morning Price Prediction
Meet Big Eyes (BIG), Crypto’s Next Big Project
Litecoin price analysis: LTC lost value at $49.98 after a strong bearish run
Making Crypto History: Will Logarithmic Finance (LOG) Repeat The Success Of Ethereum (ETH) And EOS (EOS) Following Its Launch?

Follow Us

Industry News

Three Arrows files for Chapter 15 bankruptcy in New York
KuCoin boss denies halting withdrawals
Crypto plunges to its worst in 11 years
CoinFlex CEO announces a shift in withdrawal date
Three Arrows could be liquidated due to the crypto market's bearish streak