Australia plans to implement a law by the end of the year requiring internet providers to proactively stop hosting scams or face steep fines, possibly igniting another conflict with Big Tech.
The top consumer regulator in Australia announced on Friday that the country intends to enact a rule by the end of the year compelling internet providers to proactively stop hosting scams or face heavy fines, potentially setting up another confrontation with Big Tech. Internet, banking, and telecommunications companies are being advised by the Australian Competition and Consumer Commission (ACCC) and the Treasury Department to develop an obligatory anti-scam code that would compel them to take appropriate precautions to safeguard consumers, including providing a reliable complaint service.
In Australia, cryptocurrency scam advertisements on the internet featuring the face of mining billionaire Andrew Forrest have led to Australians losing millions of dollars, according to Forrest. He is suing Facebook owner Meta (META.O.) and opening a new tab over the advertisements in California after saying he was unable to force Meta to take action domestically.
Currently, only telecommunications providers face specific anti-scam regulation in Australia, according to the government. But the amount lost by Australians to scams tripled to A$2.7 billion ($1.8 billion) from 2020 to 2023, in line with global trends, as the pandemic sent more people online.
Regarding the necessary anti-scam codes that apply to every industry, ACCC Chair Gina Cass-Gottlieb stated over the phone, “We are hoping to see them being rolled out in the course of this period to the end of this year.” “We do need, we think, very clear and specific enforceable legal obligations.” According to the Treasury Department, internet corporations that violate the regulations risk fines of up to A$50 million, which is three times the advantage obtained from the infraction or 30% of turnover at the time of the violation.
Forrest and other well-known Australians’ faces are used in marketing for cryptocurrency frauds, and the ACCC is suing Meta separately for allegedly failing to prohibit this practice. The ACCC filed a complaint in March 2022, and Meta is currently defending it in the pre-trial phase. A required code, according to Cass-Gottlieb, would lessen the need for “backward-looking” and laborious court enforcement, which entailed investigation, litigation preparation and resolution, as well as appeals.
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