Meta accused of allowing companies mislead users with fake AI adverts

Meta Platforms has been accused of allowing companies that are misleading users to run rampant on several of its platforms. According to reports, several people have fallen victim to sellers using artificial intelligence-generated adverts to sell their business on its platforms.

According to the report, more than 60 people have spoken out after a report by the BBC revealed that several businesses were using fake images and backstories to pose as family-run businesses in the United Kingdom to lure in shoppers.

Some of them claimed they had been targeted by advertisements on Facebook, Instagram, and consumer guides, claiming that the businesses were using Meta’s platforms to further deepen and widen their lies.

Meta accused of allowing AI adverts without disclosure

Meta previously mentioned that it had removed about six companies flagged by the BBC in its earlier report. The company mentioned that the companies claimed to originate from England, but discovered they were shipping cheap goods from Asia. The company said it did not allow fraudulent activities on its platforms and had worked closely with Stop Scams UK to protect users.

One of the firms affected is C’est La Vie, which claimed to be a longstanding jewelry retailer run by Patrick and Eileen in Birmingham, but had a return address in China. Another firm, Mabel & Daisy, which used AI-generated pictures of a mother and daughter and claimed to sell clothing from a shop in Bristol, was also removed from the platform. It was discovered that the platform sold cheap clothing from its base in Hong Kong.

Other companies that Meta claims it is taking actions against are clothing firms Sylvia & Grace, Chester & Claire, Harrison & Hayes, and Olyndra London, as well as accessories business Omelia & Oliver Jewels. Most of these companies have about one-star reviews on Trustpilot, with hundreds of customers claiming they were led to believe that they were buying the items they sold from brands based in the United Kingdom. Others also claimed that the quality of the goods they sold was below par.

Users slam the quality of the products

Claire Brown, one of the complainants, claimed that she was persuaded into buying two dresses for £73 from Luxe and Luna London after repeatedly stumbling upon the company’s appealing adverts on Facebook.

She noted that when the dresses arrived weeks after she ordered them, they were made of flimsy materials and looked awful. “It felt like a trusted brand after I’d seen it on Facebook so much, you see all these clothing collections, and I liked what I saw,” she said.

Brown claimed that she reported the incident to Meta, but failed to get a response from the firm. The company has now stopped its operations on Facebook, dropping a statement on the application that states that life had taken a devastating turn because of the death of a partner. Notably, the statement is almost identical to the one used by fake jewelry business C’est La Vie.

“It makes me feel really cross, because I hate people being scammed and the websites are the kind of thing you would share with a friend,” Claire added. Facebook user Stuart claimed he had reported several suspicious companies to Meta, but was advised to influence the ads he saw by hiding them and changing his ad preferences in its response. Stuart claimed that no further action was taken by the platform.

Some of the companies fingered in the BBC report appear to have been carrying out controversial drop shipping schemes. This is a development where a third–party buys products from a wholesaler and sells them with a significant markup, despite having never seen the products themselves.

The Advertising Standards Authority recently banned ads by a firm that shipped goods from a warehouse in Asia while pretending to be located in the United Kingdom.

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