Liam Walsh
Liam is a Co-Director at Intelligency and heads up the agency's Digital Intelligence & Paid Social activity. Over the last decade, he has worked with brands from the world of sports such as Premier League clubs to entertainment such as Channel 4 and Disney.
The Australian Competition and Consumer Commission (ACCC) has taken Meta to court, accusing the tech giant of profiting from fraudulent cryptocurrency ads on Facebook. The lawsuit, filed in 2022, claims that over half of the cryptocurrency-related ads analyzed by the ACCC were scams or violated Meta’s advertising policies. These ads falsely used endorsements from public figures like David Koch, Celeste Barber, and Chris Hemsworth without their permission.
Meta’s Knowledge and Inaction
The ACCC alleges that Meta has been aware of this issue since January 2018 but has not implemented effective measures to prevent it. According to a court hearing, 58% of the ads and their landing pages reviewed by the regulator breached Meta’s policies or were scams. While Meta initially identified 600 scam ads, the focus of the case is now on 234 specific ads.
Failure to Prevent Fraudulent Ads
The ACCC claims Meta’s response has been largely reactive, removing ads only after complaints are made. Despite this, similar fraudulent ads continue to reappear, generating revenue for the company. The regulator criticizes Meta for not adopting technology to warn users about ads featuring fake endorsements from celebrities.
Meta’s Defense and Actions Taken
Meta has responded by stating that scams are a complex issue affecting multiple platforms and industries. The company claims it works tirelessly to remove scams, taking legal action against
offenders and suspending fraudulent accounts. Between 2023 and 2024, Meta implemented steps like phone number verification for new advertisers.
Ongoing Case and Rising Scam Losses
The case is still ongoing, with no hearing date set. In 2024 alone, Scamwatch reported over $13 million in losses from investment scams on social media, underscoring the severity of the issue.
