Australian Regulator Sues Meta Over ‘Scam’ Crypto Ads

Australia’s top consumer watchdog has begun legal proceedings against Meta, Facebook’s parent company, over allegations it engaged in “false, misleading or deceptive conduct” by publishing “scam” crypto ads on its platform.

The Australian Competition and Consumer Commission (ACCC) said Thursday Meta’s conduct — permitting false ads of “prominent Australian public figures” promoting crypto — was in breach of Australian consumer law.

“It is alleged that Meta was aware that the celebrity endorsement cryptocurrency scam ads were being displayed on Facebook but did not take sufficient steps to address the issue,” the regulator said.

Facebook’s checkered history with crypto-related ads began in 2018 when the platform banned the promotion of most material associated with crypto and blockchain businesses. The platform later reversed its decision to only include initial coin offerings.

Under the platform’s terms, written permission is required for companies to promote trading platforms, software and related services and products that enable monetization, reselling, swapping or staking of crypto.

In light of the ad limitations, the regulator alleges that Meta “aided and abetted” or was “knowingly concerned” of false or misleading conduct and representations by the advertisers.

The watchdog said the ads were likely to “mislead” Facebook users into believing the schemes in the ads were connected with well-known individuals including businessman Dick Smith and TV presenter David Koch.

Advertisements on the platform contained links that forwarded users to false media articles which included quotes associated with well-known Australian public figures promoting certain crypto scams, the regulator said.

In February, Australian billionaire Andrew ‘Twiggy’ Forrest brought criminal proceedings against Meta’s platform, alleging it failed to take preventative measures against false crypto ads that used his image.

The advertisements were, in fact, scams, and the featured celebrities had never approved or endorsed them, the regulator said.

“The essence of our case is that Meta is responsible for these ads that it publishes on its platform,” ACCC Chair Rod Sims said.

“It is a key part of Meta’s business to enable advertisers to target users who are most likely to click on the link in an ad to visit the ad’s landing page, using Facebook algorithms.“

Sims added that those visits to landing pages from ads generated “substantial revenue” for Facebook.

---

Get the news in your inbox. Explore Blockworks newsletters:

• Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
• Empire: Start your morning with the top news and analysis to inform your day in crypto.
• Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
• 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
• Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
• The Drop: For crypto collectors and traders, covering apps, games, memes and more.
• Supply Shock: Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.