Dutch Consumer Federation "Meta's Fake Ads Neglected, EU Regulators Need to Intervene"

[Image source=AP Yonhap News]

The Dutch Consumers' Association has claimed that Meta, the parent company of Facebook and Instagram, is neglecting fake sales advertisements and urged the European Union (EU) regulators to intervene. Attention is focused on whether new EU-wide advertising regulations will be introduced in the future.

On the 24th (local time), the Dutch Consumers' Association, Consumentenbond, stated in a press release that "Meta is violating the EU Digital Services Act (DSA)" and explained, "According to our own investigation, about 71% of over 100 fake e-commerce sites reach customers through Facebook and Instagram ads." They added, "Since Meta does not verify the identity of advertisers, consumers exposed to fake sales ads may suffer damages," emphasizing the need for intervention by EU regulators.

Consumentenbond pointed out that Facebook and Instagram only remove one problematic ad even when the police receive reports, but do not respond to the remaining ads linking to fake sites. They also criticized the unnecessarily complicated procedures, such as requiring evidence when filing reports.

According to the DSA, companies designated as 'Very Large Online Platforms (VLOP)' such as Meta must actively block false and illegal content, and if violated, the company may face fines of up to 6% of their global revenue.

Earlier, the EU Commission revealed that it is investigating Meta for suspected violations of the DSA due to inadequate responses to misinformation and policies regarding minors. With the possibility of investigations into advertising-related violations also raised, attention is focused on what measures will be taken going forward.