Meta and the ACCC: The debate over cryptocurrency advertising on Facebook

Meta is battling the Australian Competition Commission, rejecting allegations that more than half of Facebook's crypto ads are scams and highlighting efforts to protect users.

In recent years, Meta, the parent company of Facebook, has found itself at the center of a dispute with the Australian Competition and Consumer Commission (ACCC), which claimed that 58% of cryptocurrency ads on the Facebook platform are scams, citing data from a 2018 study.

Meta vehemently denies the allegations, saying the information is outdated and does not reflect the current state of affairs. The company emphasizes that it actively works to prevent fraud, using manual checks, automated systems, and machine learning technologies to identify and remove suspicious ads and accounts. Meta also says it has signed up to the Australian Online Fraud Code and has updated its advertising guidelines to ensure that only legitimate content is posted on the platform.

Despite this, The ACCC alleges Meta knew about the problem with fraudulent ads since 2018 but continued to earn revenue from such ads. Meta, in turn, emphasizes that in the first quarter of 2024, it removed more than 600 million fake accounts and 436 million pieces of spam content. Moreover, most of them were blocked before users had time to complain about them.

In addition, several celebrities have filed lawsuits against Meta, accusing the company of failing to act on fraudulent ads using their names and images. Among them is Australian billionaire Andrew Forrest, who said Facebook's advertising platform facilitated the creation of such fraudulent ads.

So the dispute between the ACCC and Meta boils down to the question of how relevant these allegations are, and whether Meta has taken sufficient steps to protect its users. Meta says the situation has improved, and it continues to work to strengthen protections on its platform.

Author's opinion. My grandfather often said: “There are always two fools at the market: one sells and the other buys.” So why are the complaints directed specifically at Meta when scam ads are everywhere? All media outlets make money from the same thing, regardless of the platform. Perhaps it is a matter of wanting to make a fuss about a popular company. If the goal was really to combat fraud, the work would be carried out on all platforms, regardless of their size and number of users.

Of course, giants like Meta should be an example of morality and maintain a high standard. But perhaps they are faced with a lack of tools, time, or even the greed of individual managers who, in pursuit of personal bonuses to their salaries, put profit above morality. Before investing your money anywhere, study the issue from all sides.

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