Sydney: Meta Platforms, the parent company of Instagram and Facebook, announced on Monday that it has introduced stricter advertising regulations for financial products and services targeting Australian consumers. This move is part of a broader effort to combat scams on its social media platforms.
The decision follows Meta’s October actions, where the company removed 8,000 “celeb bait” ads. These deceptive ads often use images of famous personalities to lure individuals into fake investment schemes, exploiting their trust. Meta’s collaboration with Australian banks aims to curb these scams, which have plagued the platform in recent months.
As part of the new regulations, advertisers of financial services will be required to verify critical information, such as the Australian Financial Services License number, before their ads are allowed to run. Meta ANZ Managing Director, Will Easton, emphasized the importance of this step, saying, “The introduction of financial advertiser verification is an important additional step towards protecting people in Australia from these sophisticated scammers.”
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Once verified, advertisers will be required to include payer and beneficiary details in their ads, which will be displayed in a “Paid for By” disclaimer after the ad is approved. These measures aim to increase transparency and reduce the risk of fraudulent activities targeting Australians.
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The announcement comes amid a wider regulatory shift in Australia. Last month, the Australian government withdrew its proposal to fine internet platforms up to 5% of their global revenue for not preventing the spread of misinformation online. This bill was part of an extensive regulatory crackdown by the government, which has voiced concerns about foreign tech companies overriding the country’s sovereignty. In addition, Australia recently passed a landmark law banning social media use for children under 16.
