Australia plans to introduce a law by the end of the year that will require internet companies to stop hosting scams proactively or face strict fines. The Australian Competition and Consumer Commission (ACCC) and the treasury department are working with internet, banking, and telecommunications firms to create a mandatory, enforceable anti-scam code. This code will obligate companies to take reasonable steps to protect users and provide effective complaint services.

Scams, including cryptocurrency scam advertisements featuring mining billionaire Andrew Forrest, have caused significant financial losses in Australia. Forrest is suing Meta in California for failing to act against these ads domestically. From 2020 to 2023, the amount lost by Australians to scams tripled to A$2.7 billion, mirroring global trends as more people turned to online activities during the pandemic.

Why does this matter?

The ACCC's push for new laws aims to make all participating industries accountable. This restrictive legislation might create a conflict between Australia and an industry that relies on US laws, which largely exempt them from responsibility. Previously, a law forcing internet companies to pay media companies licensing to media companies fees led Meta to consider blocking media content on Facebook in Australia.

The proposed mandatory anti-scam codes, which the ACCC hopes to implement by the end of the year, would subject companies to fines of A$50 million, three times the benefit gained by wrongdoing, or 30% of turnover at the time of the infraction. The ACCC is also suing Meta for failing to stop the publication of scam ads, with the case still in the pre-trial stage. Meta preferred a voluntary code, arguing that a mandatory code might stifle innovation.