Meta's 'Regulatory Theater': How Social Media Giant Manages Scam Perception

Meta launched a campaign to reduce scam ads on Facebook and Instagram to avoid strict regulations in Japan. Internal documents reveal their tactics to manipulate scam ad perception and resist global regulatory pressure. This strategy safeguards revenue but raises ethical concerns over transparency and fraud prevention.

Japanese regulators were alarmed last year by an influx of scam ads on Facebook and Instagram, prompting Meta, the platforms' owner, to act quickly. The social media giant feared Japan might mandate identity verification for all advertisers, potentially curbing fraud but affecting its revenue, internal documents from Meta reveal.

To prevent this, Meta deployed a campaign to reduce visible scam ads, partially by manipulating the appearance of these ads to regulators. The strategy included repeatedly searching and removing scam ads from the platforms and their searchable 'Ad Library.' The documents show Japan's scrutiny prompted Meta to devise a global playbook to delay similar regulatory challenges in other markets.

Despite efforts to address fraudulent advertising, the documents highlight Meta's resistance to universal advertiser verification due to costs and revenue concerns. This stance has ignited debates over the company's ethical obligations in preventing scams and maintaining transparency, a dilemma particularly highlighted as Meta continues to profit significantly from high-risk ads.

(With inputs from agencies.)