Australia to Introduce Anti-Scam Law Targeting Internet Giants This Year
Australia intends to enact an anti-scam law targeting internet corporations by the end of the year. The law will oblige businesses to proactively stop hosting frauds or face penalties. The Australian Competition and Consumer Commission is engaging with industry stakeholders on developing a mandated anti-scam code.
The Australian Competition and Consumer Commission (ACCC) and the Treasury Department are now in discussions with internet, banking, and telecommunications companies about developing an obligatory anti-scam code. This code will legally require these organisations to take reasonable precautions to protect users and provide an effective complaint process.
The move is in reaction to the increasing prevalence of frauds in Australia, particularly those involving cryptocurrencies. Mining billionaire Andrew Forrest has highlighted the issue, claiming that bitcoin scam adverts incorporating his image have cost Australians millions of dollars. Forrest has filed a lawsuit against Facebook owner Meta in California, alleging that the company has failed to take action domestically. Currently, only telecommunications providers in Australia are subject to particular anti-scam rules, yet the amount lost to scammers by Australians has risen to A$2.7 billion ($1.8 billion) between 2020 and 2023, following global trends.
The ACCC has been pressing for new rules that will hold all participating industries liable for scams. By imposing legal obligation on online platforms, Australia risks clashing with an industry that has previously depended on US regulations, which mostly protect them from responsibility. This decision follows the ACCC's earlier law, which forces internet businesses to pay licencing fees to media companies for connections to their material. Meta has already promised to remove media content on Facebook in Australia in retaliation to this legislation.
ACCC Chair Gina Cass-Gottlieb expressed the hope that the mandatory anti-scam codes would be rolled out by the end of this year. Failure to comply with the codes could result in fines of up to A$50 million, three times the benefit gained from wrongdoing, or 30% of turnover at the time of the offence, according to the treasury department.
The ACCC is currently suing Meta for its alleged failure to prevent the publication of cryptocurrency scam advertisements featuring prominent Australians, including Andrew Forrest. Meta is defending the case, which was filed in March 2022 and is still in the pre-trial stage. Cass-Gottlieb believes that introducing a required code would lessen the need for time-consuming judicial enforcement while also allowing for more explicit and detailed legal responsibilities.
Meta has not commented on the date of the anti-scam code, but has previously voiced a desire for a voluntary code, implying that an obligatory code may stifle innovation by prioritising compliance.
Australia plans to introduce an anti-scam law targeting internet companies by the end of the year.
The law will require companies to proactively stop hosting scams or face fines.
The Australian Competition and Consumer Commission is consulting with industry stakeholders to create a mandatory anti-scam code.
Source: REUTERS