Australia to bring anti-scam law targeting internet giants this year, regulator says
Australia plans to introduce a law by the end of the year requiring internet companies to proactively prevent scams or face significant fines, according to the Australian Competition and Consumer Commission (ACCC).
The ACCC and the treasury department are working with internet, banking, and telecommunications firms to create an enforceable anti-scam code that mandates these companies to take reasonable steps to protect users, including offering effective complaint services.
The push for new laws comes in response to a rise in scam-related losses, which tripled to A$2.7 billion from 2020 to 2023.
Currently, only telecommunications providers are subject to anti-scam regulations in Australia.
The proposed legislation aims to hold all participating industries accountable, potentially leading to conflicts with Big Tech, similar to past disputes over licensing fees for media content.
Failure to comply with the new codes could result in fines of A$50 million or more.
The ACCC is also suing Meta for not stopping advertisements for cryptocurrency scams featuring prominent Australians.
ACCC Chair Gina Cass-Gottlieb stated that a mandatory code would streamline enforcement, reducing the need for lengthy court battles.
Meta, preferring a voluntary code, expressed concerns that mandatory compliance might hinder innovation.