Judge Orders Meta to Reveal Scam Ad Data

A US judge has ordered Meta to disclose details about how scam ads spread across its platform after the company admitted to hosting 230,000 fraudulent ads featuring a billionaire's image since 2019. The ruling could shed light on how fraudsters exploit Meta’s advertising tools, potentially impacting millions of users worldwide.

Meta’s advertising systems have come under scrutiny in a long-running legal case over cryptocurrency scam ads targeting Australians. The tech giant has previously argued it is not responsible for third-party content, but the court’s decision forces it to provide internal data on how these scams operate.

The court order requires Meta to submit electronic records showing when the scam ads were published, as well as metadata from a sample selection to analyse their reach. It must also disclose the technologies, including artificial intelligence, that contributed to targeting users. This data could determine whether Meta’s own tools played an active role in amplifying fraudulent ads.

This ruling is a significant step in holding tech platforms accountable for online scams, but challenges remain. Meta has previously relied on legal protections that shield platforms from liability for user-generated content. However, growing international pressure could lead to increased regulation. The Australian Competition and Consumer Commission is pursuing a separate legal case against Meta over scam-related profits.

Source: Australian Financial Review, Daily Telegraph, The Australian