Facebook owner Meta sued by Australian commission $319 billion
The social media titan said it had cooperated with the Australian Competition and Consumer Commission’s investigation.
Facebook CEO Mark Zuckerberg speaks during a live-streamed virtual and augmented reality conference to announce the rebrand of Facebook as Meta, in this screen grab taken from a video released October 28, 2021. Facebook/Handout via REUTERS ATTENTION EDITORS - THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY. NO RESALES. NO ARCHIVES. MANDATORY CREDIT
Facebook faces $319 billion class-action lawsuit in UK
According to the commission, the ads featured well-known Australians, including former New South Wales premier Mike Baird and businessman Dick Smith.
But the high-profile personalities featured in the ads had never approved or endorsed them, it said.
“Apart from resulting in untold losses to consumers, these ads also damage the reputation of the public figures falsely associated with the ads,” said the commission’s chair, Rod Sims.
“Meta failed to take sufficient steps to stop fake ads featuring public figures, even after those public figures reported to Meta that their name and image were being featured in celebrity endorsement cryptocurrency scam ads,” he said.
The commission said it was aware of one consumer who had lost more than A$650,000 (US$480,000) in one of the scams being falsely advertised as an investment opportunity on Facebook.
Facebook CEO Mark Zuckerberg speaks during a live-streamed virtual and augmented reality conference to announce the rebrand of Facebook as Meta, in this screen grab taken from a video released October 28, 2021. Facebook/Handout via REUTERS ATTENTION EDITORS - THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY. NO RESALES. NO ARCHIVES. MANDATORY CREDIT
Facebook faces $319 billion class-action lawsuit in UK
According to the commission, the ads featured well-known Australians, including former New South Wales premier Mike Baird and businessman Dick Smith.
But the high-profile personalities featured in the ads had never approved or endorsed them, it said.
“Apart from resulting in untold losses to consumers, these ads also damage the reputation of the public figures falsely associated with the ads,” said the commission’s chair, Rod Sims.
“Meta failed to take sufficient steps to stop fake ads featuring public figures, even after those public figures reported to Meta that their name and image were being featured in celebrity endorsement cryptocurrency scam ads,” he said.
The commission said it was aware of one consumer who had lost more than A$650,000 (US$480,000) in one of the scams being falsely advertised as an investment opportunity on Facebook.