Facebook owner Meta is facing escalating criticism over its handling of misleading and fraudulent advertisements propagated through AI-generated content on its platforms, particularly Facebook and Instagram. More than 60 individuals contacted the BBC, alleging they were targeted and deceived by firms that falsely posed as family-run UK businesses selling quality products. These companies used AI-created images and narratives to falsely promote themselves, shipping cheap goods primarily from Asia while masquerading as local retailers. Meta confirmed it had removed content from six such companies after the BBC's investigation, including the likes of C’est La Vie and Mabel & Daisy, which purported long-standing local heritage but operated with return addresses in China or Hong Kong.

Victims recounted experiences of being lured by compelling ads on Meta’s platforms only to receive inferior goods, often accompanied by poor customer service and opaque company communications. Claire Brown, for instance, shared how she was persuaded to buy dresses from Luxe and Luna London after seeing frequent adverts on Facebook, only to be sent cheaply made items weeks later. She reported the company to Meta but received no meaningful response, highlighting a gap in consumer protection on the platform. Others noted receiving automated replies or were simply advised to modify their ad preferences rather than seeing direct enforcement actions taken.

Many of these firms appear to operate via dropshipping schemes, where sellers mark up wholesale goods shipped directly from Asia without ever handling the products themselves. Such practices have drawn regulatory scrutiny; the UK’s Advertising Standards Authority (ASA) recently banned ads from a "British" clothing company that heavily misrepresented its origins by using UK-centric imagery while sourcing goods abroad. Consumer rights organisation Which? criticised Meta for allowing these deceptive ads to proliferate unchecked and urged stronger enforcement measures to combat scams.

Meta defends its position by emphasizing collaboration with initiatives like Stop Scams UK and urging users to report suspicious adverts. It describes user reports as valuable signals that help trigger advert reviews and policy improvements. Furthermore, Meta is expanding cooperation with UK banks through its Fraud Intelligence Reciprocal Exchange (FIRE) to share data that helps identify and dismantle scam networks, having recently collaborated with NatWest and Metro Bank to take down tens of thousands of fraudulent accounts. Nathaniel Gleicher, Meta’s global head of counter-fraud, said tackling these issues requires joint action between financial institutions and platforms.

However, criticism persists on multiple fronts. In the United States, senators Josh Hawley and Richard Blumenthal have called for investigations by the FTC and SEC into Meta’s profiting from scam ads, citing internal documents revealing the company expects substantial revenue from such ads in 2024. They argue Meta’s anti-fraud enforcement remains inadequate, with internal staff cuts and shifting focus towards AI investments that may inadvertently exacerbate the problem by enabling more sophisticated scams. Estimates suggest scams on Meta’s platforms cause tens of billions of dollars in losses annually in the US alone.

Amid this backdrop, Meta is enhancing its brand protection and takedown tools, introducing streamlined processes and improved categorization of content violations to help brands combat misuse of their identities. The tech giant is also pushing generative AI tools as part of its advertising suite, a move that has sparked user frustration and concerns about increased misinformation and spam, compounding challenges in policing the platform.

The persistence of AI-driven scams on Meta’s platforms comes as the company concurrently makes controversial policy shifts, such as replacing traditional third-party fact-checking with user-generated “community notes” to handle misinformation, a change that has attracted criticism for potentially increasing disinformation risks.

For consumers, watchdogs like Which? advise vigilance: be wary of adverts that promise deals that seem too good to be true, scrutinize recently created accounts with few followers, and verify brands via independent sources such as Trustpilot to avoid falling victim to sophisticated AI-generated scams. Experts also suggest simple checks like verifying shop front images through a quick Google search to expose fabricated premises.

While Meta claims to be taking active steps towards crackdowns on fraudulent activity and partnering with external organisations, the scope and scale of AI-enabled scams and misleading advertising reveal ongoing vulnerabilities in its platforms. The combination of technology-driven deception, regulatory pressures, and evolving enforcement efforts makes this an increasingly complex and critical issue for social media governance and consumer protection.

📌 Reference Map:

  • [1] (BBC News) - Paragraphs 1, 2, 3, 4, 6, 8, 9, 10
  • [2] (Reuters) - Paragraphs 5, 7, 11
  • [3] (CNBC) - Paragraph 6
  • [4] (Android Central) - Paragraph 9
  • [5] (Axios) - Paragraph 10
  • [6] (AP News) - Paragraph 10

Source: Noah Wire Services