Social media giants TikTok and Meta took money from criminal groups to run advertising for nicotine products, before pulling many of the videos spruiking cigarettes and vapes after questions from this masthead.
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TikTok → take → masthead
At the start of the month, Australia marked 50 years since fully phasing out cigarette advertising on TV and radio, with the prohibition later expanded to include other forms of media.
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prohibition → mark → media
But despite the ban, numerous advertisements seen by this masthead show AI-generated women promoting illegal nicotine products on TikTok, Facebook and Instagram, helping to prop up the estimated $10 billion black market in Australia.
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women → see → Australia
Meta’s various social media platforms including Facebook, Instagram, WhatsApp and Threads, carry hundreds of unique ads selling vapes from a Chinese brand of vapes called Alibarbar, which are imported to the country by international crime gangs, the company’s own ad library shows.
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library → include → gangs
The ads compound questions over the behaviour of big social media companies in Australia and the scrutiny they apply to the billions of dollars in digital advertising revenue they make each year here, most of which is transferred – entirely legally – to lower-tax jurisdictions offshore.
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most → compound → jurisdictions
Both companies tell this masthead they have taken action against the accounts advertising tobacco and vape products.
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they → tell → products
However, they failed to explain how the ads were approved to be shown to users, or how much revenue they have taken from displaying the ads.
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they → fail → ads
Both TikTok and Meta platforms show advertisements for Austobac, which claims to be a Sydney-based business spruiking delivery of the Manchester brand of cigarettes produced in the Middle East, as well as Double Happiness, a Chinese brand of cigarettes.
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which → show → cigarettes
The distinctive packaging, which is in flagrant breach of Australia’s plain packaging laws, is a clear indicator these types of cigarettes are being sold under the counter, adding to the black market of cigarettes which has undercut the legal market and created a new industry of underworld crime and firebombings.
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which → sell → crime
Health authorities have warned that illegal vapes can contain poisonous substances including formaldehyde and antifreeze, while illegal cigarettes can also include a raft of unsafe substances, as well as the traditional cancer-causing ingredients.
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cigarettes → warn → substances
Meta Ads manager shows 460 unique and different ads that have been bought by different vendors selling the specific Alibarbar vape products.
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that → show → products
At least 93 unique ads for Alibarbar were active as of Wednesday afternoon when this masthead put questions to Meta.
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masthead → put → Meta
There is no way of telling how many users across Facebook, Instagram, WhatsApp and its other platforms have been shown such ads.
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users → be → ads
A spokesperson for Meta said ads for tobacco and vapes were not allowed.
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ads → say → tobacco
“Criminal groups deliberately try to evade detection, and we continue to invest in our systems and to work with law enforcement and Australian authorities to stay ahead of them,” the spokesperson said.
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spokesperson → try → them
“We have reviewed the examples provided and taken action against the accounts and ads that breach our policies.”
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that → review → policies
Despite the statement, 86 advertisements for Alibarbar products remained active on Friday afternoon.
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advertisements → remain → afternoon
Asked if Meta would return money for the advertisements that have already run, having become aware they were probably paid for with the proceeds of criminal activity, a spokesperson said, “no”.
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spokesperson → ask → activity
A spokeswoman for TikTok said all the accounts this masthead identified have been permanently banned.
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masthead → say → TikTok
“We are constantly working to proactively identify, review, and remove content at scale that violates our policies, using a combination of technology and platform sweeps to do so,” the spokeswoman said.
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spokeswoman → work → technology
She added that 99.8 per cent of videos violating regulated goods and services were taken down before they were reported.
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they → add → goods
Some estimates suggest between 95 and 98 per cent of vape sales in Australia are illegal.
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cent → suggest → Australia
Vapes are only legally sold at pharmacies and cannot contain the enticing flavours common in black market alternatives.
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Vapes → sell → alternatives
The Australian Bureau of Statistics has reported that illicit cigarettes and vapes have risen from 12 per cent of the market in 2017 to 80 per cent in 2025.
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cigarettes → report → 2025
The Australian digital advertising market hit an all-time high in 2026.
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market → hit → 2026
Digital video advertising now accounts for more advertising revenue than television, and TikTok is one of the biggest players in that space.
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TikTok → account → space
Social video advertising revenue reached $2.4 billion in the 2026 financial year, up almost 30 per cent year-on-year, according to digital advertising trade group IAB Australia.
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revenue → reach → Australia
This masthead has previously reported that tech giants including Meta, Amazon and Google sent more than $14 billion in revenue offshore last year, paying combined income tax of just $212 million in the 2025 calendar year.
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giants → report → year
TikTok is also one of the biggest platforms on the rise in Australia, writing $883.7 million in revenue in 2025, with most of that figure coming from advertisements.
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most → write → advertisements
Traditional media companies, which are subject to much tighter regulations in relation to both content and advertising laws, have suffered sustained revenue declines as a result of advertisers and marketing agencies moving their dollars toward digital platforms like Google, Meta and TikTok.
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advertisers → suffer → Google
Meta collected $1.74 billion in gross advertising revenue from a portion of its Australian advertisers, a 19 per cent jump on 2024, but sent $1.51 billion of that to related entities overseas for the right to resell the tech giant’s ad inventory, this masthead previously reported.
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masthead → collect → inventory
This figure is not the complete picture, with some advertisers buying from its different digital platforms directly, which are not reflected in the figures.
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which → buy → figures
The government enacted its social media ban for under 16s in December, but many kids are still using social media platforms and getting around the new restrictions with ease.
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kids → enact → ease
The Australian Federal Police declined to comment.
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Police → decline → ?
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newsletter → deliver → stories
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