Fragmented oversight lets fake celebrity ads flourish on Dutch social media
Fragmented supervision and low enforcement have allowed fake advertisements on social media to continue unchecked, according to a recent investigation by BNR. The problem affects well-known Dutch individuals and companies whose images are misused to promote products like diet pills and investments, often resulting in financial losses for consumers.
Media law attorney Matthijs Kaaks, who represented Dutch journalist Jort Kelder in a lawsuit against Google, said, “Because of the lack of enforcement, fake ads keep appearing.” The Court of Appeal previously ruled that Google should have prevented the large-scale distribution of ads featuring Kelder’s image that linked to bitcoin fraud sites. Despite the nearly two-year-old ruling, fake advertisements remain widespread.
The Netherlands Authority for the Financial Markets (AFM) warns consumers about fraudulent ads and reminds social media companies of their responsibilities. At the same time, the Dutch Authority for Consumers and Markets (ACM) and the Stichting Reclame Code also play roles in enforcement. However, the Reclame Code Committee can only issue recommendations, and the ACM can only fine companies based in the Netherlands.
Internal documents obtained by Reuters indicate that Meta earns an estimated 10 percent of total revenue from advertising fraudulent goods or services. About 15 billion questionable ads are posted daily on Meta platforms. According to the documents, the company intervenes only when it is 95 percent certain that fraud is occurring, relying on higher rates to deter uncertain cases.
The European Digital Services Act (DSA) places oversight of major platforms like Google and Meta under the European Commission and the Irish regulator, as both companies are statutorily headquartered in Ireland. The use of foreign servers, fake profiles, temporary accounts, and international networks complicates police investigations into online fraud. A police spokesperson said, “Due to the volume and complexity, we make sharp choices and focus on cases with the largest societal impact. Prevention and awareness play an important role.”
Police received around 200 reports of fake investment ads featuring celebrities in the past year, though officials say the actual number of victims is likely higher.
The Dutch Food and Consumer Product Safety Authority (NVWA) only monitors claims in food product advertisements, not the use of celebrity images. “Whether a Dutch celebrity is advertised is not relevant for us; it’s whether the claim is allowed,” said an NVWA spokesperson.
Experts say social media platforms themselves contribute to the problem. Royce de Vries, a media law attorney, stated, “These are billion-dollar companies that can act against this. They simply do too little.” Kaaks added, “Governments and regulators need to increase pressure on big tech so they respond faster. Companies continue to claim they are not responsible for user-generated content.”
The rise of AI is expected to worsen the problem. A spokesperson for Fraudehelpdesk, a Dutch fraud-reporting agency, said, “Every new technology is also used by scammers.” The police warned, “AI makes misleading ads increasingly convincing, so people fall for them more easily.”
Google reports removing nearly 150 million ads in 2024, enforcing its guidelines rigorously. “Misleading ads are prohibited to protect user safety,” said a company spokesperson. Despite these claims, both Google and Meta are accused of insufficient cooperation in stopping fake ads, which are commercial rather than ordinary social media posts. Kaaks said, “There is a huge profit motive behind scams with deepfakes.”
