Meta facing 2nd fine in Taiwan for anti-fraud ad disclosure failures

Taipei, June 18 (CNA) Meta Platforms, Inc. could be fined as early as this week for failing to disclose information on individuals who funded advertisements on its social media platforms, marking the second such penalty in Taiwan for violating the anti-fraud act.

According to Ministry of Digital Affairs (MODA) Deputy Minister Lin Yi-jing (林宜敬), the ministry recently received 23 new cases from the Ministry of the Interior involving incomplete disclosure of advertisement information on Meta's platforms, without specifying whether the cases involved Facebook or Instagram.

"Meta failed to fully disclose information regarding who paid for the advertisement and who benefited from it," Lin said at a news conference on Tuesday when asked about the progress of the ministry's review of those new cases.

He added that a meeting with other agencies had already been held and that the administrative process is ongoing as authorities await Meta's response.

An unnamed MODA official told CNA that a decision on the penalty could be made as early as this week.

If MODA decides to impose the fine, it would mark the second such penalty against Meta in Taiwan, following a NT$1 million (US$33,381) fine issued in May for violating the Fraud Crime Hazard Prevention Act by failing to disclose information on individuals who commissioned and funded two Facebook advertisements.

The act stipulates that when online advertisement platform operators publish or broadcast advertisements on their platforms, they shall disclose "information related to personnel commissioning the publishing and broadcasting and investors."

At the time the fine was made public by MODA, Meta said it has "a responsibility to do our utmost to combat fraud on our platforms," adding that the company takes the matter "very seriously."

The social media giant also noted that it will continue working with the government and other relevant stakeholders across platforms and industries to "fight online fraud together."

During a meeting of the Legislative Yuan's Transportation Committee on Wednesday, Lin said most fraudulent advertisements on Meta's platforms are posted by users who create fan pages to publish such promotional content.

The public only sees the fraudulent advertisements but not the issues related to those accounts behind the advertisements, he added.

When senior Meta executives visit Taiwan -- reportedly scheduled for July, according to a Wednesday report by the Chinese-language newspaper Liberty Times -- they will discuss account management issues with authorities, Lin said.