SOCIAL MEDIA

Meta gets itself in more hot water in both US and Australia

By our News Team | 2022

A US court has okayed a class-action lawsuit over claims of inflated advertising metrics. Aussie’s consumer watchdog is going to court too.

A US lawsuit that accuses Facebook of deceiving advertisers is to be allowed to go ahead as a class action following a ruling in a District Court in San Francisco.

By agreeing to a class action, the ruling allows potentially millions of businesses and individuals who paid for advertising to sue the parent company, Meta, as a group. Instagram, which is owned by Meta, is also being included in the lawsuit.

The claims that are being made date back to August 2014, before the Facebook business rebranded to Meta, and accuse the social media giant of inflating its claims about advertising reach.

According to the case made by the original complainants (who may now be joined by others as a result of the class-action ruling), executives at Facebook knew that the ‘potential reach’ metric was inflated by as much as 400%, yet did nothing to rectify the situation and preferred to cover it up.

Image by Succo from Pixabay

The estimation of potential reach can be skewed by various factors, including duplicate and fake social media accounts.

Meta is trying to have the lawsuit dismissed, and this application will be heard in court later this year.

Aussie consumer watchdog snaps at Meta

The social media company continues to be involved in various disputes around the world. For example, last month the national consumer watchdog in Australia announced it was launching legal action against Meta, alleging it allowed scam ads to target Facebook users with fake celebrity endorsements.

In a statement, the Australian Competition and Consumer Commission (ACCC) claimed the ads used Facebook’s algorithms to target susceptible users and included false quotes claimed to have been made by Australian celebrities.

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

We know AI influencers aren’t real – so why do we trust them?

Researchers describe AI influencers as having a ‘dual identity’. Consumers evaluate both ‘person’ and ‘technology’ identities at once.

Hotel receptionist assisting a guest at the check in counter with a gray suitcase nearby behind the desk

Why trust has become a critical asset for hotel industry marketers

Reputation and trust, once modest influences on hotel choice, have become some of the strongest predictors of patronage, study finds.

Three people in formal attire pose for a photo at an awards event a woman in a pink dress holds a trophy while two men in suits stand beside her against a gold confetti backdrop

FNB bank’s eBucks programme dominates the 2026 SA loyalty awards

South African brands are increasingly setting the global benchmark for customer loyalty strategies, organisers say.

Portrait of a man with short black hair and a beard wearing a black button down shirt against a light gray background

Zambia’s strongest creative ideas are emerging from local truths

Global influences among younger consumers are still present, but they are being filtered through a distinctly Zambian lens.

Yellow humanoid robot at a bakery counter inspecting a display of donuts on display in front of glass cases

Consumers have doubts about products when they’re designed by AI

Researchers find that lack of perceived ‘genuine care’ is the mechanism connecting AI involvement to lower trust ratings.

Top african marketing voices confirmed for amc

Top African marketing voices confirmed for AMC 2026

Explore the 2026 AMC Conference speaker line-up. Top African marketing voices gather in Zambia to tackle AI, AfCFTA, and brand power. Register today.

Person holding two smartphones with app icons visible on their screens a large tv screen in the background shows colorful app icons

Broadcast Research Council confirms launch of total video measurement

New industry currency will bring South African television and online video audiences together in a single measurement system.

Dj performing on a brightly lit stage as colorful lights shine over a dancing crowd

Sense of belonging and atmosphere are key to attracting event-goers

Making people feel that an event space reflects their values leads to long-term loyalty and spending. FOMO also plays its part.

Smiling woman with curly hair in a yellow and white striped shirt holds a red can and points to the text 'what makes some ai ads creepy '

Researchers examine why some AI ads fail while others succeed

Norms may change, but right now it’s better to err on the side of caution when using AI in advertisements, study finds.

Woman in a denim jacket looks at her phone while standing with a shopping cart in a grocery store aisle holding a boxed item

Study examines drivers of FMCG purchases in three African markets

GeoPoll insights report from Kenya, Nigeria and South Africa finds that quality remains the key purchase driver in FMCG.

E-commerce retailer aims to speak to the hearts of South Africans

As the country celebrates Heritage Month, Takealot embarks on a campaign to speak to consumers in all 12 official languages.