Andrew “Twiggy” Forrest launches criminal case against Facebook
Billionaire mining magnate Andrew “Twiggy” Forrest has launched a criminal case against Facebook over allegations the company failed to prevent scams from using his image, in what he says will be the first criminal case the social media site has faced globally.
He claims that Facebook breached Australian anti-money laundering laws in relation to the spread of cryptocurrency scams.
Meta, the company that owns Facebook, has not commented on Dr Forrest’s case but said it was “committed to keeping those people [scammers] off our platform”.
The scams that use Dr Forrest’s image - and those of other celebrities - promote bogus investments that promise rich returns.
An example of the scams circulating on Facebook using Andrew Forrest's image. Image: Crikey
Although the platform bans these kinds of ads, many still appear.
Dr Forrest, the former CEO of Fortescue Metals who has a PhD in Marine Science, has alleged that Facebook had been “criminally reckless” in not doing more to stop the ads which first began appearing in early 2019.
He said he had also written an open letter in November 2019 addressed to Facebook CEO Mark Zuckerberg, urging him to take action.
“I’m concerned about innocent Australians being scammed through clickbait advertising on social media,” Forrest said in a statement on Thursday.
“I’m acting here for Australians, but this is happening all over the world.”
Under Australian law, the consent of the attorney-general is needed in order to privately prosecute foreign corporations for alleged offences under the Commonwealth Criminal Code.
“The Attorney-General has given her consent to the private prosecution against Facebook in relation to alleged offences under subsection 400.7(2) of the Criminal Code,” Stephen Lewis, the principal of Mark O’Brien Legal which will be representing Mr Forrest, told AFR.
Dr Forrest has also filed a civil lawsuit in California, where Facebook’s headquarters are located.
According to The Australian, he is alleging in that suit that Facebook “knowingly profits from this cycle of illegal ads.
Citing court documents, the newspaper reported that one victim had lost $940,000 ($1 million NZD) because of a fake endorsement featuring Dr Forrest.
In a statement to media, the social media company said scam ads violated its policies and that it takes a “multifaceted approach” to stopping them.
“We work not just to detect and reject the ads themselves but also block advertisers from our services and, in some cases, take court action to enforce our policies,” a Meta representative said.
Dr Forrest’s case in Australia will be heard in the Magistrates Court of Western Australia from March 28.
If he is successful, the social media platform could face a maximum penalty of $126,000 ($135,000 NZD) on each of three charges.
Image: Getty Images