This fine comes in response to what EU regulators describe as Meta’s alleged unfair advantage in the classified ads market by linking Marketplace with its popular social media platform, Facebook. 

According to the European Commission, Meta’s actions effectively forced users of Facebook to also engage with Facebook Marketplace, an arrangement described as an illegal “tie” under EU competition laws. 

In allegedly making Marketplace accessible only through Facebook, Meta is accused of creating an uncompetitive environment for other classified ad platforms. 

These platforms, as argued by EU regulators, face disadvantages due to the strong link between Facebook’s vast user base and Marketplace’s visibility within the same app. 

This structure, the EU says, may suppress competition from both large and emerging classified ad providers across the region.

Meta has countered these claims, stating that Facebook users have a choice whether to use Marketplace and that the EU has not presented evidence proving actual harm to consumers or its competitors. 

Meta plans to appeal the decision, maintaining that it believes the allegations overlook the optional nature of Marketplace for Facebook users, many of whom choose not to engage with it. 

Meta also reiterated its will to cooperate with EU regulators, saying that, despite its intent to appeal, it will work quickly to implement any necessary changes to address the Commission’s concerns.

The investigation into Meta has been ongoing since June 2021, with formal charges filed in December 2022. Regulators specifically spoke about possible anti-competitive behaviour arising from how Facebook Marketplace’s visibility is structured within the larger Facebook platform. 

Launched in 2016 and subsequently rolled out across several European markets, Facebook Marketplace competes with a range of online classified services.

However, amidst the plethora of legitimate sellers lie deceptive scammers waiting to prey on unsuspecting buyers.

To help you steer clear of potential scams and protect your hard-earned money, Trevor Cooke, the online privacy expert at EarthWeb, shares valuable insights and practical tips for staying safe on Facebook Marketplace.

Don’t Send Any Deposits Without Verification

Before sending any deposits, it’s essential to confirm that the item is real, either by inspecting it in person or through a video call.

Trevor explains,

‘Scammers often use the tactic of requesting deposits upfront without providing any proof of the item’s authenticity so that they can ghost you and walk away with the deposit.’ Protect yourself from potential scams by ensuring that you’ve verified the legitimacy of the product before making any financial commitments.

Review The Seller’s Profile Thoroughly

Thoroughly reviewing a seller’s profile is crucial to identifying potential scams. Pay attention to how active they are on the platform, as inactive or newly created accounts could be indicators of fraudulent activity.

Additionally, be wary of sellers with numerous suspicious or very similar listings, as this may suggest deceitful behavior.

Taking the time to assess the seller’s profile can help you make informed decisions and avoid falling victim to scams.

Stay Suspicious Of Off-Platform Conversations

If a seller or buyer suggests taking the conversation off the platform, be wary, as scammers may use this tactic to exploit your personal information.

Trevor says,

‘By communicating outside of the platform, you risk exposing yourself to identity theft or other fraudulent activities, especially if they ask for your phone number. Also be cautious of buyers who immediately ask for personal details, as they may be attempting to gather sensitive information for fraudulent purposes.’

Prioritize Safety in Meetups

When meeting a seller in person, always prioritize safety by taking other people with you or arranging to meet in a public place.

Scammers may attempt to take advantage of isolated or private locations to carry out fraudulent activities. By meeting in a public setting or with others present, you reduce the risk of potentially dangerous situations.

Inspect Items Carefully Before Accepting

When accepting items in person, it’s essential to inspect them carefully to ensure that they meet your expectations and match their description.

Scammers may attempt to deceive buyers by misrepresenting the condition or quality of the items they’re selling.

You should be especially careful if you’re buying electric equipment, and you should insist on plugging it in or switching it on to check it works before handing over any payment.

Avoid Unsecured Transactions

Avoid paying through unsecured transactions or methods that lack buyer protection, such as gift cards. You should also refrain from stating that you’re paying a friend or family member on PayPal, as this removes your payment protection.

Scammers may pressure you into using unsecured payment methods to evade platform fees or prevent refunds. Trevor advises, ‘Accept only money directly deposited into your bank account as payment, as scammers may attempt to use fake receipts to deceive you.’

Verify Tracking Numbers

Before finalizing any transactions, verify any tracking numbers provided by the seller on the delivery company’s official website. Scammers may provide fake or invalid tracking numbers to deceive buyers into believing that their parcels have been shipped.

By independently confirming the tracking information, you can minimize the risk of falling for delivery scams.

Ship Your Parcels With Tracking for Security

Trevor says, ‘Always ship parcels with tracking to ensure transparency and security throughout the delivery process.

Scammers may claim that they never received the parcel to avoid fulfilling their end of the transaction. By shipping parcels with tracking, you can provide evidence of delivery and protect yourself from fraudulent claims of non-receipt.’

Beware Overpayment Scams

Scammers may overpay you and then request a refund, only to later retract the initial payment. Be cautious of this tactic and avoid refunding excess funds without verifying their legitimacy.

Scrutinize payment amounts and transaction details before sending any money.

Trevor asserts, ‘By following these expert tips and staying informed about common scam tactics, you can navigate Facebook Marketplace with confidence and enjoy a secure shopping experience online.’

[Featured Image Credit]

Online retail in South Africa has more than doubled in just two years and with 29.5 million-strong Facebook users, more than half of the country’s population has a Facebook account.

Dominating the online classifieds

Marketplace has become so popular in South Africa that similar platforms are struggling to compete. Previously-popular OLX has closed its doors, while Gumtree still hangs on by a thread.

Facebook Marketplace has outstripped the popularity of these online classifieds portals for several reasons. It is free and simple to use, as most people already have a Facebook account.

It also allows users to search for listings from their local area, making pick-up much easier.

Furthermore, because people can view sellers’ profiles, they feel more assured of safety and security on the site. Unfortunately, this is often a false sense of security. 

Facebook fraud is becoming increasingly common

One recent global survey revealed that one in six (17%) respondents have been defrauded on the site.

Of course, while much of the commerce on this classified side of Facebook is legitimate, like any other online marketplace, it is also a haven for scammers.

With fake listings extending to even apartment sales and car purchases, the stakes are high. That puts great pressure on users to understand the typical tricks that con artists use, and what they can do to avoid falling prey to online scammers.

Here are the top six scams to watch out for on Facebook Marketplace and how to spot any red flags:

1. Defective items

Sellers may advertise a product that looks fine from the photograph they posted. But once you receive it, it turns out to be broken.

This is particularly tricky when buying electronic items because you usually can’t toggle through every functionality before handing over your money.

2. Fake items

You might accidently buy a fake item. Designer clothes, perfume, jewellery and cosmetics are particularly common targets for counterfeiting. Like defective item scams, it’s difficult to ascertain whether items are genuine or not just from a small photo.

Everyone’s looking for a bargain but we all know the saying, “when the offer seems too good to be true, it usually is.”

3. Overpayment

Sellers can also get scammed by fraudsters on Facebook Marketplace. In one classic example, fraudsters could claim to have overpaid for an item you’re selling and send a screenshot showing the alleged transaction.

They’ll ask for the difference to be refunded. But of course, there was no original payment, and if you comply with their request, you’ll be out of pocket.

4. Non-delivery (advance fee)

A classic trick is to sell an item and collect the money but then never deliver it to the buyer. This usually only applies to items sent from outside the buyer’s local area. 

5. Fake giveaways/phishing

One way for scammers to get personal details is to spam out giveaway offers via Facebook Marketplace.

Simply by clicking on a link and filling in a short form, the victim believes they’re going to be in line for some free luxury items, crypto or other special deals. Unfortunately, the scammers just want their personal information to commit follow-on identity fraud or theft.

6. Bait-and-switch

Scammers advertise what is often a high-quality product with a very tempting price tag. When you want to grab the “bargain”, that product is suddenly “out of stock” or “sold out” and you will be offered a similar item for a much steeper price, or an inferior alternative.

How to spot a Facebook Marketplace scam

As with any kind of online fraud, the key for users is to err on the side of scepticism and always remain alert.  Here are some tips to help you navigate Facebook Marketplace safely:

• Inspect items before purchasing by only buying from local sellers in your area.
• Always meet in a public place rather than at your home, ideally during daylight hours.
• Check buyer/seller profiles for user ratings and reviews and be cautious if the profile was only recently created.
• Check the original price of items and if there is a significant difference between the usual price and the sale price, be aware that it may be counterfeit/stolen/defective, etc.
• Beware of giveaway deals and never enter your personal details to access them.
• Only use trusted payment methods via Facebook Messenger (PayPal, Facebook Checkout) as they offer a way to dispute payment. Gift cards, EFTs and services like eWallet and Instant Pay are commonly requested by fraudsters.
• Keep your conversation on Facebook – scammers like to move the conversation to another platform where it’s easier to swindle people and prevent them from disputing transactions.
• Never ship items before payment has been made and the money is reflecting in your account. Check your account to verify that the payment has been cleared. Do not accept an emailed “proof of payment” as these can be fraudulently generated.
• Do not send two-factor authorisation codes to prospective buyers. Under no circumstances should you ever share these types of codes.

If any red flags are raised and you suspect fraud, you should report the seller immediately via Facebook help.

As the cost of living continues to soar, more users will be turning to online platforms like Facebook Marketplace to buy goods at discounted rates. More users mean more potential victims for scammers, so be cautious.