FCA Finds 1,052 Illegal Ads in a Single Week
Britain's Financial Conduct Authority (FCA) has concluded that Meta repeatedly failed to stop illegal financial promotions on its platforms. A review conducted during one week in November found 1,052 unauthorized ads for high-risk products like currency trading and Contracts for Difference (CFDs). Alarmingly, 56% of these promotions came from advertisers the FCA had already flagged to the tech giant, demonstrating a persistent breakdown in Meta's enforcement process. A second review in December confirmed that a small number of repeat offenders were responsible for most of the illegal content.
The regulator has focused on Meta's platforms—Facebook, Instagram, and WhatsApp—because they carry a disproportionate volume of suspicious financial advertising. The FCA warned last year that social media is a primary channel for online trading scams targeting UK consumers. In response to the findings, Revolut, a digital bank, stated that Meta's platforms are the largest source of authorized fraud reported to it, urging the company to act urgently.
UK's Delayed Enforcement Creates a 'Regulatory Black Hole' Until 2027
Meta's failure to police its platform is compounded by a legislative gap in the UK. While the Online Safety Act allows for fines up to 10% of a company's global revenue for running illegal content, the specific provision covering paid-for scam ads has been delayed until at least 2027. This leaves regulators like the FCA and Ofcom powerless to take direct action against Meta for these violations. Meta made a voluntary commitment in 2022 to only permit ads from FCA-authorized firms, but the recent review shows this promise has not been met.
A stark contrast in enforcement effectiveness was revealed when Reuters conducted a test. A reporter created a suspicious ad teasing 10% weekly returns and attempted to run it in Britain and Australia. The ad was approved and ran in the UK, where Meta faces no financial penalty. However, the same ad was automatically blocked in Australia, where the company faces fines up to A$50 million ($35 million) for failing to verify financial advertisers. This suggests Meta's ad controls are significantly more robust in markets with meaningful financial penalties.
Industry Backlash Grows as IAB Sweden Expels Meta
The ongoing failure to address scam ads has led to significant reputational damage, culminating in Meta's expulsion from IAB Sweden. The trade body revoked Meta's membership and board seat on March 10 after a nearly year-long investigation into the issue. The decision was driven by pressure from publishers and advertisers after investigations revealed Meta was not only failing to block scams but in some cases was allegedly profiting from them through a "penalty bid system." While Meta claimed its revenue from such ads was 3-4%, the IAB Sweden board was not satisfied with the company's progress.
This marks a rare instance of a major trade organization taking formal action against one of the world's largest advertising platforms. The move has placed a spotlight on the 44 other IAB divisions worldwide, including those in the US, UK, and Australia, where Meta remains a board member. While those chapters have so far defended their collaborative approach, the expulsion from Sweden signals a growing intolerance within the digital ad ecosystem for platforms that fail to police fraudulent content.
Edgen Stock·Mar 18 2026, 06:50
