A PYMNTS Company

Australian Watchdog to Introduce New Anti-Scam Law Targeting Internet Giants

By  |  July 14, 2024
Australia Law

Australia plans to introduce anti-scam legislation by the end of the year that will mandate internet companies to proactively prevent hosting scams or face substantial fines. This initiative, spearheaded by the Australian Competition and Consumer Commission (ACCC), could potentially set the stage for another confrontation with Big Tech.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    Subscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The ACCC, in collaboration with the treasury department, is currently consulting with internet, banking, and telecommunications firms to develop a mandatory, enforceable anti-scam code in Australia. This code will legally obligate these companies to take reasonable measures to protect users, including offering an effective complaint service, as reported by Reuters.

    This anti-scam legislative push is partly in response to the widespread issue of cryptocurrency scam advertisements in Australia. Mining billionaire Andrew Forrest highlighted the problem, revealing that these scams, often featuring his image, have led to Australians losing millions of dollars. Forrest is suing Facebook owner Meta in California over these advertisements, after failing to compel Meta to take action domestically.

    Currently, only telecommunications providers in Australia are subject to specific anti-scam regulations. However, the amount lost by Australians to scams has tripled to A$2.7 billion ($1.8 billion) from 2020 to 2023, mirroring global trends as the pandemic drove more people online. This alarming increase has spurred the ACCC to advocate for new laws that hold all participating industries accountable.

    Imposing legal liability on internet platforms could ignite new tensions between Australia and an industry that typically relies on U.S. laws, which largely exempt them from responsibility. This isn’t the first time Australia has clashed with Big Tech. A recent ACCC-designed law requiring internet companies to pay media companies licensing fees for content links led Meta to threaten to block media content on Facebook in Australia.

    As Australia moves forward with this new anti-scam legislation, the country braces for potential pushback from major internet companies. T