By Asmita - Dec 02, 2024
Meta Platforms tightens advertising rules for financial products in Australia to combat increasing financial scams targeting consumers, including the use of deepfake technology. The new regulations mandate advertisers to disclose their identities and aim to enhance transparency to protect consumers from fraudulent investment schemes. The move follows a rise in investment scams, with 5,738 reported cases resulting in over $135 million in losses between January and September 2024. Advertisers must provide an Australian Financial Services License number to advertise financial services on Meta platforms, with full compliance required by February 2025. The initiative is part of a broader effort to safeguard Australians from sophisticated scammers and improve consumer trust in financial advertisements on social media.
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Meta Platforms, the parent company of Facebook and Instagram, has announced new regulations aimed at tightening advertising rules for financial products in Australia. This initiative comes in response to a surge in financial scams targeting Australian consumers, particularly those utilizing sophisticated methods such as deepfake technology to impersonate celebrities and promote fraudulent investment schemes. The new rules require advertisers to disclose their identities, including who is paying for the ads and who benefits from them, as part of a broader effort to enhance transparency and protect consumers from deceptive practices.
The implementation of these regulations is significant given the alarming rise in investment scams reported in Australia. According to Scamwatch, between January and September 2024, there were 5,738 reported investment scams that resulted in losses exceeding $135 million. A notable portion of these scams was facilitated through social media platforms, where scammers have exploited the credibility of public figures. Meta's new requirements will mandate that advertisers provide an Australian Financial Services License number or an explanation for their exemption from this requirement. This move aims to ensure that only legitimate financial services are advertised on its platforms.
Will Easton, the managing director for Meta Australia and New Zealand, emphasized that the introduction of financial advertiser verification is a crucial step toward safeguarding Australians from sophisticated scammers who impersonate legitimate institutions. The changes are expected to roll out over the next month, with full compliance required by February 2025. Advertisers will need to include a "Paid for By" disclaimer in their ads once verified, making it clear who is behind the promotion. This level of transparency is anticipated to deter fraudulent activities and enhance consumer trust in financial advertisements on social media.
In addition to these measures, Meta's actions align with broader regulatory efforts by the Australian government to combat online scams and enhance consumer protection. The government has proposed a new digital competition regime aimed at holding big tech companies accountable for their role in facilitating scams. This includes potential penalties for platforms that fail to comply with advertising standards or engage in anti-competitive practices. As Meta continues to refine its advertising policies, industry experts and consumer advocates have welcomed these changes as a necessary step toward creating a safer online environment for Australian users.