Meta Castigated for Illegal Canadian Debt Relief Ads

Core Viewpoint - A Canadian licensed insolvency trustee is urging Meta to address the ongoing issue of illegal debt-relief advertising on its platforms, despite numerous warnings and evidence of harm [1][10]. Group 1: Illegal Debt-Relief Advertising - Unlicensed debt advisors are using Facebook and Instagram to target financially distressed Canadians, costing consumers and creditors millions while undermining the regulated insolvency system [2]. - Canadians paid nearly $20 million in 2023 to unregulated debt advisors for services that should have been free through licensed insolvency trustees, with the actual figure likely being higher [3]. - The Office of the Superintendent of Bankruptcy (OSB) has issued multiple warnings and alerts regarding misleading debt advisors who falsely present themselves as licensed professionals [4]. Group 2: Regulatory Challenges - The OSB and the Canadian Association of Insolvency and Restructuring Professionals have taken aggressive enforcement actions, but the regulator's powers are limited, preventing direct shutdown of illegal advertisers [5][6]. - Ongoing investigations into 32 licensed insolvency trustee licenses and 13 corporate trustee firms have been reported, alongside criminal referrals and successful convictions [6]. Group 3: Comparison with Other Platforms - Unlike Meta, Google has implemented safeguards requiring advertisers of insolvency-related services to verify their licensing status, which is seen as a more responsible approach [8]. Group 4: Impact on Stakeholders - The presence of these misleading ads not only harms vulnerable individuals but also damages creditors, distorts the insolvency process, and erodes public trust [9].