Dutch consumers’ association demands action against Meta for fake web ads

The Dutch consumer advocacy group Consumentenbond is calling on Meta to take stronger measures to block fake webshops from advertising on Facebook and Instagram. The association has also urged the European Commission to address Meta, the American parent company of the two social media platforms.

According to their research, Instagram and Facebook systematically display advertisements that redirect consumers "with a single click" to fraudulent online shops. These fake webshops take payments but do not deliver anything. Out of more than 100 fake webshops investigated, 71 reached customers through ads on these two major social media platforms.

"Meta hardly verifies the identity of advertisers, which opens the door to abuse," the association stated. Under the Digital Services Act (DSA), large online platforms are required to actively block harmful content and minimize risks to consumers. The association claims Meta is not meeting the obligations set by this European directive, which has been in effect for a year.

The Consumentenbond also expressed dissatisfaction with Meta’s handling of reports from the police. "They remove the flagged ad upon request, but not all other ads linking to the same fake shop."

It is often difficult for consumers to distinguish between fake webshops and legitimate ones, according to the association. The fraudulent sites often look polished, use nearly flawless language, and nearly half of the fake websites examined accept payments using the iDEAL payment processing system popular in the Netherlands.

The association’s director, Sandra Molenaar, also pointed to the role of the Dutch banks. "iDEAL has a trustworthy image. Many consumers assume, 'It's from the bank, so it must be safe.' But criminals have access to the system too. We believe Dutch banks should be more critical of who uses their payment tool."