Traders and businesses blacklisted on the Credit Reference Bureaus (CRBs) will be denied access to advertising services on Facebook and sister platforms.
Facebook founder and CEO MArk Zuckerberg. Photo: Facebook.
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Meta, the parent company for Facebook, Instagram and WhatsApp, revised its terms to build its customers’ profiles as it plans to reduce ad payment defaults.
The new terms will see advertisers pay account dues on time or face legal action, including listing on the CRB.
“You will pay all expenses associated with such collection, including reasonable legal fees. Past due amounts will accrue interest at 1% per month or the lawful maximum, whichever is less,” read Meta’s new terms in part.
The new moves intended to take effect from January 2023 will see Meta improve its business from non-performing accounts by ensuring advertisers’ creditworthiness before labelling them as invoiced clients.
“By placing an order, you authorise us to obtain your personal and/or business credit report from a credit bureau, either when you place an order or at any time thereafter.
“Non-invoiced clients are those who must make payments at the time of purchase itself. In its sole discretion,
Meta may classify clients as invoiced clients based on factors such as ad spend and creditworthiness,” read part of the terms as quoted by Business Daily.
Digital tax
This came amidst demand by the government to raise tax revenue from companies doing business online.
This is the digital service tax, which is 1.5% of the gross transactional value.