Meta Platforms, the parent company of Instagram and Facebook, has introduced stricter ad regulations. This move, announced on Monday, is designed to enhance the transparency and safety of financial product and service advertisements on its platforms.
The new rules come on the heels of an alarming surge in scams that prey on unsuspecting users, with scammers exploiting images of celebrities to promote fraudulent investment schemes. Meta has already taken significant action by removing over 8,000 so-called “celeb bait” ads in October 2024, in collaboration with Australian banks, to reduce the number of misleading advertisements.
Meta’s new requirements mandate that advertisers targeting Australian users with financial products or services provide proof of their legitimacy before running ads. Specifically, advertisers must now verify their Australian Financial Services License (AFSL) number and submit other essential information regarding their financial activities. This additional verification step aims to ensure that the entities behind these advertisements are fully accountable, reducing the likelihood of scams.
Meta’s Managing Director for Australia and New Zealand, Will Easton, emphasized the significance of this move in a statement. “The introduction of financial advertiser verification is an important additional step towards protecting people in Australia from these sophisticated scammers,” he said. This new policy aims to make it more difficult for bad actors to exploit the platform for financial gain.
Once advertisers are verified, their ads will display a “Paid for By” disclaimer, which will show details about the payer and beneficiary. This level of transparency is expected to make it easier for users to identify the source of financial products and services, giving them more confidence in the legitimacy of the offers they see online. The new guidelines will only apply to financial services, ensuring that users can better trust these types of advertisements in particular.
Meta’s crackdown on fraudulent financial ads comes as part of a broader effort by Australian authorities to protect consumers in the digital age. Australia has been grappling with the increasing influence of foreign-domiciled tech giants that dominate the online space. The Australian government has been vocal about its frustration with these platforms, accusing them of undermining the country’s sovereignty. Meta’s new ad rules are in line with the country’s regulatory push to ensure that online platforms bear greater responsibility for the content they host.
In the wake of this new regulation, Meta’s action is expected to significantly impact the landscape of digital advertising in Australia, particularly for those in the financial services sector. By imposing these stricter ad verification protocols, Meta hopes to curb the influence of fraudulent ads, especially those using deceptive tactics to lure in consumers.
Interestingly, this initiative follows a recent shift in Australia’s legislative approach to online content. Last month, the government dropped plans to fine internet platforms up to 5% of their global revenue for failing to curb the spread of misinformation. While this was seen as a setback in the push for tougher penalties, the introduction of these ad verification rules by Meta signals a continued commitment to regulating online activity and protecting Australian users.
Meta’s increased focus on financial services ads also comes at a time when users are more susceptible to online scams than ever before. With the rise of digital platforms and the increasing sophistication of fraudsters, Meta’s enhanced verification process will be crucial in addressing the trust deficit that many Australians have in online advertising.
In conclusion, Meta’s tightened ad rules mark a significant step in addressing the growing problem of online financial scams. The requirement for advertisers to verify their AFSL number and provide detailed beneficiary information will help safeguard Australians against deceptive financial schemes. By imposing stricter regulations, Meta is aiming to restore consumer confidence and make the online space a safer place for financial transactions. However, this move is only part of a larger regulatory landscape that continues to evolve as Australia navigates the challenges of digital safety in an increasingly interconnected world.