Big win for former Sunrise presenter David Koch as government proposes new law that could fine companies $50 MILLION

Social media platforms will face fines if they fail to take action against scammers who use fake celebrity endorsements or fake news stories.

Banks and telecommunications companies could also face extraordinary fines of up to $50 million if they allow scammers to rip off unsuspecting Australians, under tough new laws proposed by the Albanian government.

Deputy Finance Minister Stephen Jones will on Friday publish the bill outlining the reforms, which he says will give Australians “the best protection in the world”, news.com.au reported.

The proposed reforms are part of a government effort to hold social media platforms and large corporations accountable.

The move is expected to please TV personality and former Sunrise presenter David Koch, who regularly explosions Meta and Facebook for failing to remove scam ads that used his image.

Along with billionaire Andrew Forrest and entrepreneur Dick Smith, Koch is involved in a 2022 lawsuit brought by the Australian Consumer & Competition Commission against Facebook owner Meta. Meta is accused of engaging in misleading behavior by allowing fraudulent ads.

Koch expressed frustration last year that the legal case had stalled while Australians were still being ripped off.

“I’m just shocked at what (the scams) do to ordinary people – it’s their entire life savings,” he said.

“If (Meta) has algorithms that can recognize inappropriate messages from customers on a platform, why don’t they have the same algorithms that can recognize inappropriate ads and content on their platforms?”

Under the proposed Scams Protection Framework, the federal government could create sector-specific codes that impose an obligation to stop scams.

Internal dispute resolution mechanisms should be accessible and transparent so that customers can use them if they fear they have been scammed.

A prescriptive Endpoint Detection and Response scheme is being introduced to regulate communications services in Australia.

The reforms initially target banks and telecommunications service providers, but also digital platforms and social media services.

“The Albanian government is doing everything it can to make Australia the world’s toughest target for fraudsters,” said Assistant Finance Minister Jones.

‘We want to ensure that people here in Australia have the best protection anywhere in the world.

‘Australians are losing too much money to scams. We are in contrast to the international trend, where the number of scams is doubling every year, yet the losses are still far too high.’

Communications Minister Michelle Rowland added: “Tackling criminals who try to defraud hardworking Australians is a priority for this Government.”

Anthony Albanese’s government has introduced new laws that could see companies fined millions if they don’t stop fraud

One example of the kind of scam messages Koch has long complained about is that Facebook in particular allows too much freedom

Koch compared the scammers to “the new drug cartels” and urged platforms to compensate victims or stop such ads.

“They are just there to financially defraud people and it is the boiler rooms in the Philippines or Eastern Europe that run all this,” Koch said.

‘It is the responsibility of the platforms to compensate people who have been scammed, or to prevent such advertisements from appearing on the platform.’

Koch previously admitted to being “devastated” when he discovered his likeness had been illegally used to steal money from unsuspecting victims, including an Australian woman who lost $250,000 to a cryptocurrency scam using his name.

“People who trust me and believe what I say, and look at me and say ‘wow, I’m taking some comfort in what this guy is saying’, then get scammed by a scammer from overseas,” he told Seven Spotlight in May.

“It’s terrible because my reputation is at stake and these scams are so effective.”

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Big win for former Sunrise presenter David Koch as government proposes new law that could fine companies $50 MILLION