Facebook charges software firm over deceptive ads linked to coronavirus scams
By MYBRANDBOOK
Facebook has sued the founder of a software company for running deceptive advertisements on its social-media platforms, including links to investment scams and bogus information about the coronavirus pandemic.
According to the lawsuit filed in California, Basant Gajjar’s “LeadCloak” software, designed to circumvent automated review systems in Facebook and Instagram, baits users into clicking on links that are unrelated to the ad. Facebook said the software pushed deceptive ads for diet pills and drugs and cryptocurrency investment scams.
Gajjar, who was named as a defendant in the Facebook suit, didn’t immediately respond to a request for comment. He’s an Indian citizen residing in Thailand, according to the lawsuit. LeadCloak has also targeted other technology companies including Google, Oath, WordPress and Shopify, Facebook said in its lawsuit.
It’s been difficult for Facebook to remove such ads from its social platforms. The company is relying more on automated systems to solve the problem, because many of its contractors can’t work on the problem from home, for privacy and legal reasons.
Gajjar’s website advises advertisers to block Facebook and Google IP addresses to evade the companies’ review of non-compliant landing pages, Facebook said in its complaint. LeadCloak’s customers can sign up for a “pay-as-you-go” option or pay monthly fees between $399 and $1,999 to use Gajjar’s cloaking service, according to the lawsuit.
Facebook said nearly 4,202 users clicked on an ad from late March showing an “innocuous” landing page promoting stainless steel spoons. Facebook has asked the court to permanently block LeadCloak services and seeks damages, including compensation for resources spent to identify and stop Gajjar’s “injurious activities.”
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