TLDR
- Meta denies ACCC’s claim that 58% of crypto ads on Facebook are scams
- Meta says ACCC’s data is from 2018 and not representative of current situation
- ACCC alleges Meta profits from scam ads despite removing some after complaints
- Meta claims to use manual and automated reviews to combat scam ads
- Meta reports removing 631 million fake accounts in Q1 2024
Meta, the parent company of Facebook, has rejected claims made by the Australian Competition and Consumer Commission (ACCC) that over half of cryptocurrency advertisements on its platform are scams.
The ACCC, as part of a 2022 lawsuit, recently filed a statement to federal court alleging that 58% of the crypto ads it reviewed on Facebook were fraudulent.
In response to these allegations, a Meta spokesperson told Cointelegraph that the ACCC’s data relies on outdated information from 2018 and is based on a “limited data set.” The company argues that this data is unlikely to accurately represent the current state of its platform.
“The preliminary analysis referred is an allegation in the ACCC’s claim and relates to a historic internal study from 2018 of a small sample of ads,” the Meta spokesperson stated. “Meta is defending the ACCC’s claim and will respond to the allegation in due course.”
The ACCC’s investigation reportedly identified 600 ads and claimed that Meta has been aware of misleading promotional practices in many Facebook crypto ads since at least January 2018.
The watchdog also alleged that while Meta does remove individual scam ads after receiving complaints and bans associated accounts, it continues to profit from similar ads.
Meta contests these claims, asserting that it has implemented various measures to curb scam advertisements. The company says it uses manual reviews, automated technology, and has updated its guidelines to ensure advertisers post legitimate content. Meta has also opted into the Australian Online Scams Code (AOSC).
“We currently use, and continue to explore, a variety of methods, such as new machine learning techniques, to identify content and accounts that violate our policy,” the Meta spokesperson explained.
To support its efforts, Meta provided statistics on its recent actions against fake accounts and spam content. In the first quarter of 2024, the company reports removing 631 million fake accounts and 436 million pieces of spam content from Facebook. Meta claims that 99.4% of fake accounts and 98.2% of spam content were acted upon before users reported them.
The dispute between Meta and the ACCC is part of a broader issue involving cryptocurrency scams on social media platforms. Several celebrities have taken legal action against Meta, claiming the company has not done enough to prevent scams using their likeness.
In June 2022, Australian mining tycoon Andrew Forrest filed a civil suit against Meta in California Northern District Court. Forrest alleged that “Facebook’s self-help advertising interface materially helped scammers develop” ads.
More recently, in April, Danish television hosts Divya Das and Kim Bildsøe Lassen reported Meta to the police after discovering their images had been used in thousands of Facebook ads without their consent. That same month, four scam victims in Japan launched legal action after being deceived by online investment ads featuring celebrity images.
