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TikTok and Meta hosted hundreds of ads for illegal tobacco and vapes, investigation finds

Social media platforms took money from criminal groups to promote nicotine products despite Australia's long-standing advertising ban

By LineZotpaper
Published
Read Time2 min
Sources2 outlets
TikTok and Meta accepted advertising revenue from criminal groups to run ads for illegal cigarettes and vapes on their platforms, according to an investigation by this masthead. The ads, some featuring AI-generated women, appeared on TikTok, Facebook and Instagram, promoting brands such as Alibarbar, Austobac and Double Happiness. The companies removed many of the ads after inquiries but did not explain how they were approved or how much revenue they generated.

Australia this month marked 50 years since the full phase-out of cigarette advertising on television and radio, with the ban later extended to other media. Despite the prohibition, hundreds of unique ads for illicit nicotine products were identified on Meta’s platforms, including Facebook, Instagram, WhatsApp and Threads, the company’s own ad library shows. On TikTok, ads also promoted the same black-market brands.

Both companies told this masthead they had taken action against the accounts involved. However, they did not disclose how the advertisements were initially approved, nor the amount of revenue earned from displaying them. The advertisements contribute to an estimated $10 billion black market for tobacco and vapes in Australia, with vapes from the Chinese brand Alibarbar imported by international crime gangs.

The findings raise further questions about how large social media platforms screen advertisements and the scrutiny they apply to the billions of dollars in digital advertising revenue they collect in Australia each year, most of which is legally transferred to lower-tax jurisdictions offshore.

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Analysis

Why This Matters

  • Australians, particularly young people, are being exposed to ads for illegal nicotine products on major platforms they use daily.
  • The revelations undermine confidence in social media companies' ability to police their own advertising systems and highlight a potential revenue stream from illicit trade.
  • The case may prompt Australian regulators to investigate or introduce new rules governing digital advertising of prohibited goods.

Background

Australia has progressively tightened tobacco advertising laws since the 1970s, culminating in a complete ban on broadcast ads 50 years ago that was later extended to print and digital media. Despite these laws, a large black market for cigarettes and vapes has flourished, with organised crime groups smuggling products into the country. Social media has become a key channel for marketing these illegal goods, often using AI-generated content to evade automated moderation.

Key Perspectives

Health and law enforcement authorities: They view the ads as a direct breach of Australia's advertising bans and a contributor to the black market, which also evades tax and exposes users to unregulated products. Social media companies: TikTok and Meta say they have taken action against the offending accounts but have not explained how their ad approval systems allowed the ads to run, nor disclosed the financial benefit they received. Critics and skeptics: The platforms' lack of transparency about approval processes and revenue suggests inadequate safeguards, and some question whether the companies are sufficiently motivated to stop a lucrative practice.

What to Watch

  • Whether the Australian Communications and Media Authority or other regulators launch an investigation.
  • Any further disclosure from TikTok and Meta about the number of ads removed or revenue returned.
  • Potential legislative proposals to impose stricter liability on platforms for illegal advertising.

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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