Meta Slapped with Lawsuit from Australia’s Second Richest Billionaire Alleging It Facilitated Crypto Scam Campaigns on Facebook
Meta tried to have the lawsuit dismissed, but a US judge rejected their appeal.
- An Australian billionaire is suing Meta for allegedly facilitating crypto scam ads on Facebook using his image.
- The lawsuit claims over 1,000 scam ads ran in Australia in 2023, using Meta’s tools and AI; a US judge allowed the case to proceed.
- This is the first case where a social media company cannot use Section 230 immunity; Forrest seeks compensation and punitive damages.
Meta Platforms is being sued by Australian billionaire Andrew Forrest, who alleges that the company facilitated a massive crypto scam campaign on Facebook. The campaign reportedly used his image and deepfakes to defraud millions of dollars from victims.
The lawsuit claims that over 1,000 ads ran in Australia from April to November 2023, using Meta’s advertising tools and generative AI to enhance visuals. Meta attempted to have the lawsuit dismissed, but the court ruled that Forrest’s claims of publicity rights and negligence could proceed.
Meta, like other social media platforms, is protected by Section 230, which shields hosts from legal liability for third-party content. What makes this case unique is the alleged use of Meta’s generative AI tools to enhance the scam ads, raising questions about the platform’s involvement.
Lawsuit Alleges Meta’s Active Involvement
US District Judge Casey Pitts rejected Meta’s motion to dismiss, allowing Australia’s second-richest person to proceed with his claim that Meta’s negligence in handling the ads breaches the company’s commercial duty, per Reuters.
“Dr. Forrest claims that Meta profited more from ads that included his likeness than it would have if the ads had not… This is enough to adequately plead that the alleged misappropriation was to Meta’s advantage.”
This is the first case where a social media company has been unable to shield itself under Section 230 immunity. Forrest is seeking compensation and punitive damages. Interestingly, Australian prosecutors declined to pursue criminal charges against Meta over the scam crypto ads.
Andrew Forrest’s Complaints Started in 2014
Andrew Forrest began using social media in 2014 after discovering fake Facebook pages using his image. Meta had him create a verified page and removed some, but not all, impostor pages.
By early 2019, he found Facebook ads fraudulently using his name and likeness to endorse crypto scams. Despite being given a direct line to report such content and assurances of improved detection mechanisms from Meta, the scam ads persisted.
In November 2019, Forrest wrote an open letter to Mark Zuckerberg about the issue and started filing lawsuits in September 2021.
