Meta Platforms, the parent company of Instagram and Facebook, has introduced enhanced regulations for advertisers of financial products and services in Australia. The new measures aim to curb the spread of scams on its platforms, addressing growing concerns about fraudulent activity targeting Australian consumers.
The updated rules, effective from Monday, require advertisers to verify critical information, including their Australian Financial Services License (AFSL) number, as part of a more stringent verification process. Once verified, advertisers must disclose their payer and beneficiary details within a “Paid for By” disclaimer displayed alongside approved ads. This marks a significant step in Meta’s efforts to combat sophisticated scams designed to deceive users.
The initiative follows Meta’s October announcement about removing 8,000 “celeb bait” advertisements. These ads used images of celebrities to lure victims into fraudulent investment schemes, leading to financial losses for unsuspecting individuals. Meta worked closely with Australian banks during this operation to tackle the rising tide of such scams.
Will Easton, Meta’s managing director for Australia and New Zealand, emphasized the importance of this new measure. “The introduction of financial advertiser verification is an important additional step towards protecting people in Australia from these sophisticated scammers,” Easton said in a statement.
This regulatory update is part of a broader effort in Australia to address issues linked to online platforms. In a related development, Australia’s government recently shelved plans to impose fines of up to 5% of global revenue on platforms failing to control misinformation. The legislative push was part of Canberra’s strategy to assert its digital sovereignty, which has included other measures like the recently approved ban on social media for children under 16.
As Australia gears up for a federal election within a year, the spotlight on digital regulation highlights the balancing act between safeguarding online users and maintaining the platforms’ operational freedom.
Featured Image courtesy of GONZALO FUENTES/REUTERS
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