Aussie competition watchdog investigating Meta over crypto scam ads
Australia's consumer and competition (ACCC) watchdog is investigating Facebook’s parent company Meta for a long running series of fraudulent cryptocurrency advertisements of the platform.
The news comes just a day after Cointelegraph reported that billionaire businessman Andrew “Twiggy” Forrest was pursuing criminal action against the social media giant for allegedly serving users crypto scam ads and fake articles which used his name and likeness.
Numerous other high profile celebrities from Hugh Jackman to Nicole Kidman have been fraudulently employed to draw users into investment scams.
The ACCC alleges that Meta allowed the crypto scammers to breach Australian consumer law, defrauding victims hundreds of thousands of dollars.
In Feb 3 comments to The Australian, ACCC chair Rod Sims said that although their investigation shares similarities with Forrest’s case, the “ACCC’s investigation is separate and concerns different questions of law.”
While Forrest’s case concerns potential breaches of Australia’s Commonwealth Criminal Code, the ACCC will be examining whether Meta has “raised concerns” under the Australia Consumer Law.
Forrest claims that by failing to take sufficient steps to eliminate the scam from being shared on its platform, Meta is not only in breach of Australia’s money-laundering laws, but also behaved in a “criminally reckless” manner.
He will initially bring his case to the West Australia Magistrates Court on March 28, with a committal hearing expected later in the year.
He also launched a simultaneous civil proceeding with the Superior Court of California last September, seeking injunctive relief. The case is still pending, with the date of the civil case yet to be set.
In 2020, the Australian Securities
Read more on cointelegraph.com
