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Tag: Australian Competition and Consumer Commission

  • Australia Sues Meta Over Fake Celebrity Endorsement Ads

    Australia Sues Meta Over Fake Celebrity Endorsement Ads

    The Australian Competition and Consumer Commission (ACCC) is suing Meta over scam ads on Facebook featuring fake celebrity endorsements.

    Meta, formerly Facebook, has a complicated history with Australia, having recently engaged in a showdown over paying for news. Simultaneously, the company has struggled to keep misinformation and scammers off of its site.

    According to International Business Times, scammers used Facebook’s own algorithm to target susceptible users with fake ads feature celebrities “endorsing” various products. The ACCC believes Meta should be held responsible for not doing enough to stop the problem.

    “The essence of our case is that Meta is responsible for these ads that it publishes on its platform,” ACCC chairman Rod Sims said in a statement.

    “In one shocking instance, we are aware of a consumer who lost more than A$650,000 (£360,000; $480,000) due to one of these scams being falsely advertised as an investment opportunity on Facebook. This is disgraceful,” Mr Sims said.

    If Meta were to lose the case, it would set a major precedent, and likely lead other jurisdictions to follow suit.

  • Australia May Force Google to Give Users a Choice of Android Search

    Australia May Force Google to Give Users a Choice of Android Search

    Australia may soon force Google to give users a choice for their default search engine on Android phones.

    Google has come under increased scrutiny for its dominance in the search market. While the company argues that its dominance is the result of simply being better, critics say its overwhelming market lead all but ensure it faces no real competition. Add in aggressive deals with other companies, as well as its ability to make its search the default on Android, and Google’s position is all but unassailable.

    According to Reuters, Australia wants to change that by forcing Google to present users with a screen during initial configuration that will allow users to choose their default search engine. While it is already possible to change the default on Android, less tech-savvy users may not readily know how, something a selection screen would solve.

    “We are concerned that Google’s dominance and its ability to use its financial resources to fund arrangements to be the default search engine on many devices and other means through which consumers access search, such as browsers, is harming competition and consumers,” said Australian Competition and Consumer Commission (ACCC) Chair Rod Sims  in a statement.

    “Google pays billions of dollars each year for these placements, which illustrates how being the default search engine is extremely valuable to Google’s business model.”

  • Google Sued by Australian Consumer Watchdog Over Location Data

    Google Sued by Australian Consumer Watchdog Over Location Data

    The International Business Times (IBT) is reporting that the Australian Competition and Consumer Commission (ACCC) has filed suit against Google claiming the tech giant misleads consumers about how it collects and uses their data.

    The ACCC claims Google used “highly sensitive and valuable personal information” without properly informing consumers and giving them the opportunity to make a choice. According to the ACCC, Google used misleading on-screen prompts and labels regarding what information was being collected. The tech giant claimed that customers’ data would only be used for personal purposes and to make sure Google’s services worked properly when, in fact, the collected was used elsewhere.

    According to the complaint, between 2017 and 2018, users who did not turn off the “location history” and “web & app activity” settings had their data collected and used.

    ACCC chairman Adam Sims said: “We’re also alleging that some of the behaviour is continuing. We want declarations that the current behaviour should not continue.”

    Mr. Sims said the ACCC was seeking “significant penalties,” as well as an admission from Google that its behavior was “inappropriate.” The case will likely be watched closely by similar agencies around the world, as Google and Facebook are already under scrutiny for their handling of consumer data.

  • Apple, Australian Consumer Agency Mediation Breaks Down

    Shortly after the launch of the new iPad last month we brought you news that Apple had drawn the ire of the Australian Competition and Consumer Commission for its marketing of the tablet’s 4G capabilities in Australia. While the new iPad is compatible with 4G LTE networks currently in use in the U.S. and Canada, it does not work on Australia’s one 4G network, which is owned by Telstra, and operates on a different band than those run by American and Canadian carriers.

    In order to stave off a lawsuit, Apple changed its marketing of the new iPad in Australia, and began issuing refunds to those who felt they’d been misled by the advertising. The company also entered into mediation with the ACCC in hopes of reaching an out-of-court settlement.

    Now, however, it looks like the case will be proceeding to court. According to a report this morning from the Sydney Morning Herald, the mediation session concluded after about two hours with no agreement reached between the two parties. According to the report, one of the ACCC’s requirements was that Apple change the name of the device, which is still listed as the iPad Wi-Fi + 4G on Apple’s website (despite a disclaimer stating the iPad’s incompatibility with Telstra’s network):

    iPad 4G Australia

    A court hearing later in the day was set to determine the next step in the case.

    What do you think? Should Apple be required to take “4G” off the iPad’s name in Australia? Let us know in the comments.