Landmark Ruling: Federal Court Finds Meta Engaged in Misleading Conduct Regarding Cryptocurrency Scams
Sydney, Australia – September 5, 2025 – In a significant decision with implications for online advertising and consumer protection, the Federal Court of Australia has found that Meta Platforms, Inc. (formerly Facebook, Inc.) engaged in misleading or deceptive conduct in relation to advertisements featuring cryptocurrency scams on its platform. The judgment, delivered today by Justice Moshinsky in the case of Australian Competition and Consumer Commission v Meta Platforms, Inc. (formerly Facebook, Inc.) (No 4) [2025] FCA 1084, marks a crucial step in holding social media giants accountable for the content they facilitate.
The Australian Competition and Consumer Commission (ACCC) initiated proceedings against Meta, alleging that the company had breached Australian Consumer Law by publishing advertisements that were false or misleading. These advertisements, often appearing as sponsored content on Facebook and Instagram, falsely suggested endorsements by prominent Australians and promoted fraudulent investment schemes involving cryptocurrencies.
Justice Moshinsky’s detailed judgment found that Meta engaged in misleading or deceptive conduct contrary to s 18 of the Australian Consumer Law. The Court’s reasoning focused on Meta’s role in making these advertisements available to Australian consumers. The ACCC’s case highlighted the significant harm caused to individuals who, misled by these advertisements, invested in what turned out to be elaborate scams, leading to substantial financial losses.
This ruling underscores the responsibility that online platforms have in ensuring the veracity of advertisements displayed to their users, particularly when those advertisements promote financial products or services. The Court’s decision is expected to set a precedent for how similar cases involving online advertising and consumer protection are handled in the future, both in Australia and potentially internationally.
While the specific penalties and remedies for Meta will be determined at a later stage, the finding of contravention itself is a substantial victory for consumer protection and highlights the ACCC’s ongoing commitment to safeguarding Australians from misleading advertising practices in the digital realm. The decision serves as a clear message to online platforms about the importance of robust content moderation and due diligence in preventing the dissemination of fraudulent content that can exploit vulnerable consumers.
The ACCC has consistently expressed concerns about the proliferation of online scams, and this judgment reinforces their efforts to combat these harmful activities. The outcome of this case is likely to prompt further scrutiny of Meta’s advertising policies and enforcement mechanisms, as well as those of other major social media companies. Consumers are encouraged to remain vigilant and to report any suspicious advertisements they encounter online.
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judgments.fedcourt.gov.au published ‘Australian Competition and Consumer Commission v Meta Platforms, Inc. (formerly Facebook, Inc.) (No 4) [2025] FCA 1084’ at 2025-09-05 09:51. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.