Google, Meta, TikTok face EU consumer complaints about handling of financial scams
EU Consumer Groups File Complaints Against Big Tech Over Financial Scams
By Foo Yun Chee
Allegations of Inadequate Protection
BRUSSELS, May 21 (Reuters) - Alphabet's Google, Meta Platforms and TikTok were hit with complaints from European Union consumer groups on Thursday for allegedly failing to protect users from financial scams on their platforms.
The move highlights growing pressure worldwide on Big Tech to do more to address the negative impacts of social media, particularly for children and vulnerable users.
Details of the Complaints
The complaints, filed by the European Consumer Organisation (BEUC) and 29 of its members in 27 European countries, were submitted to the European Commission and national regulators under the Digital Services Act, which requires large online platforms to do more to tackle illegal and harmful content.
Statements from BEUC and Tech Companies
"Meta, TikTok and Google not only fail to proactively remove fraudulent ads but also do little when being notified about such scams," BEUC Director General Agustín Reyna said in a statement.
"If they fail to address the financial scams circulating on their platforms, fraudsters will continue to reach millions of European consumers daily, leaving people at risk of losing hundreds to thousands of euros to fraud," he said.
A Google spokesperson disputed the groups' assertion, saying: "We strictly enforce our ad policies, blocking over 99% of violating ads before they ever run. Our teams constantly update these defenses to stay ahead of scammers and protect people."
There was no immediate response from Meta or TikTok to an email request for comment.
Reported Incidents and Regulatory Response
The consumer groups said they reported nearly 900 ads suspected of breaching EU laws between December last year and March this year but the platforms only took down 27% of the ads and 52% of the reports were rejected or ignored.
The groups urged regulators to investigate whether the companies were complying with the rules and to impose fines for breaches.
Potential Penalties Under the Digital Services Act
DSA fines can reach as much as 6% of a company's global annual turnover.
(Reporting by Foo Yun Chee; Editing by Elaine Hardcastle and Tomasz Janowski)
