NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business

The Spinoff: Why dangerous rumours are big business for social media platforms

Other
18 Aug, 2020 07:49 PM9 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

While misinformation spreads on social media, governments have to act to stop it, such as at a planned 5G protest this year. Photo / Alex Burton

While misinformation spreads on social media, governments have to act to stop it, such as at a planned 5G protest this year. Photo / Alex Burton

The rumour that electrified New Zealand over the weekend was largely spread through Facebook-owned platforms. Duncan Greive asks how the government can continue to pay the social media giants to clean up messes they create.

Originally published by The Spinoff

Yesterday David Farrier's Webworm newsletter ran an interview with the probable source of the vile rumours that infested the country over the weekend, which posited a racist and entirely made up origin story for the Covid-19 resurgence.

Journalist Dylan Reeve followed the rumour upstream to a Reddit post which, while only live for a few hours earlier in the week, was clearly the basis of the narrative which spread like wildfire on Facebook, Instagram and WhatsApp.

The weekend's facebook post claimed New Zealand's community outbreak was because of a quarantine breach an at unnamed facility. But it wasn't true. Photo / File
The weekend's facebook post claimed New Zealand's community outbreak was because of a quarantine breach an at unnamed facility. But it wasn't true. Photo / File
Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

The person Reeve found was in many ways a sympathetic character – works in international development aid, articulate, fearful – but nonetheless wrote a post in bullet points that within a few days had contributed to a conspiracy theory so pernicious that a large percentage of the country had came into contact with it within a matter of days. It got so big that the government addressed it at the opening of a Saturday press conference, deeming it of greater importance than announcing fresh Covid-19 cases in the community.

As the conversation wore on, the source revealed himself to be someone extremely online and shattered by the impact of what he had wrought – the way his ill-considered and unsourced rumours had rocketed the length and breadth of the country.

"I may be hung out to dry, and it may be fully justified," he told Reeve. "I will take the consequences, because honestly it's one of the worst things I've ever done, articulating that." He went on to express a very real and well-founded fear for what might happen were his identity to become known.

"If my name gets near these articles, essentially I won't work in the consulting industry again. To be honest, after whatever happens in the next week or two, I might have to go and work on my parents' farm for the rest of my life, or become a carpenter under some random name."

Reeve purposefully withheld the person's identity from publication, and warned against doxing. This is the kind of judgement call publishers make every day. A similar one was made by every major media organisation in the country when confronted by the viral post – all investigated it, none could substantiate it, so none published it. Hundreds of hours of time collectively spent by various news organisations with precisely zero stories to recoup it against.

Advertisement
Advertise with NZME.

No consequences

Yet one publisher broke that line. The vast bulk of distribution seemed to happen on four platforms – Facebook, Instagram, WhatsApp and Messenger – all owned and operated by one company: Facebook.

They are brilliantly engineered and ubiquitous, allowing for an obscure Reddit post to be adapted and weaponised to millions within days if not hours. It was a nightmare scenario for the government, apparently caused immense anxiety to a family already dealing with Covid-19, and could easily have become more dangerous still, had a member of the public taken the law into their own hands.

Yet Facebook has suffered no consequences for its actions. The very real fear felt by the man who created the post is completely absent in the organisation most-responsible for its distribution. Why should it be scared?

Facebook is a core part of our information infrastructure, and remains the Labour Party's preferred method of communication, with Stuff reporting the party spent over $100,000 on the platform between May and July of this year. Prime Minister Jacinda Ardern's Facebook live appearances are hugely popular there, and she has been unrepentant about the far larger sums spent by all branches of government to communicate through the platform.

Discover more

Business

Money talks for Facebook but NZ Super Fund isn't speaking it

29 Jun 05:58 AM
Business

My adventures on Parler, Team Trump's great right hope for social media

06 Jul 05:46 AM
Business

'Google knows your every move, even with location history off'

18 Aug 05:47 AM
New Zealand

Finding the man behind the Covid outbreak rumour

18 Aug 09:25 PM

"We need to be present where people are," is Ardern's line on Facebook, and you can see the justification. It's a mass-reach platform where you can speak directly to an audience, with scarcely a breath of moderation. A privilege once reserved only for the media itself (and highly regulated there still), now available to anyone who can develop an audience, or create a piece of content that has the ingredients to spread quickly through feeds.

Yet the very same attributes that make Facebook attractive to politicians also make it prone to situations like that we saw over the weekend. They also accelerate the spread of all kinds of other conspiracy theories, misinformation and disinformation.

Spend enough time on the giant social platforms and you'll find questions asked about the efficacy of masks or whether the virus is nearly as dangerous as it's being made out to be. They are often particularly widespread in communities that have well-founded suspicions of the government and its communications apparatus, having spent centuries being lied to or discriminated against by it.

This is not an uncomplicated problem. A spokesperson for Facebook provided a statement to The Spinoff which speaks to the scale of the problem.

"We have removed 7 millions pieces of false information about the virus including false cures, claims that Coronavirus doesn't exist, that it's caused by 5G or that social distancing is ineffective. We use several automated detection mechanisms to block violating material on our platform and have removed millions of ads and commerce listings for violating our policies related to Covid-19."

Legislation possible

All that was in place prior to the weekend though, and the rumour still spread. It suggests to a confounding paradox. Facebook is engineered to facilitate the instantaneous spread of misinformation and then rewarded for it with government communications spending to counter it.

Advertisement
Advertise with NZME.

It certainly looks like an extraordinarily good business model: the false information is free, provided and consumed by its users. The accurate information that attempts to clean up the mess is paid for by the same government that relies on it to distribute its own messaging, and is thus appears loath to regulate it.

This is not because regulation is impossible. While New Zealand lacks the market power to break up Facebook and allow meaningful competition to spring up between it and Instagram or Whatsapp, there are plenty of demands it could make, as Germany has with fines and mandatory police reporting for hate speech. There is a middle ground between do-nothing and the authoritarian excesses of Turkey under Erdogan, or the outright ban in China.

Some curbing of the safe harbour laws that meant it faced no penalty for livestreaming the Christchurch terror attack would be one approach. Another would be to impose an access fee which treated it like a utility – in much the same way as we ask TV channels to pay to broadcast, or demand telcos buy spectrum, we could ask for a percentage of revenue to be devoted to employing local content moderators or creating campaigns which educate people to be more critical consumers of what they encounter on social media.

Essentially to treat Facebook like alcohol – a drug many enjoy, but one which comes with social costs for which we seek compensation, which we then devote to harm reduction and hospitals.

No solution is perfect, but the era of self-regulation is what has brought us here, and surely anything is better than this.

Despite the reluctance of New Zealand's politicians to contemplate any restraints on Facebook, there is a gathering storm of discontent with it. CEO Mark Zuckerberg is regularly hauled before Congress to explain its dominance, and there's a rising tide of large companies joining a spending boycott, including US icons like Disney and Coke. The biggest local entrant is Stuff, whose CEO Sinead Boucher eloquently captured the situation's tensions in a tweet following a recent press conference.

Advertisement
Advertise with NZME.

Given the NZ govt’s strong warning against Covid-19 social media disinformation today, perhaps it could reconsider the extent to which it funds and enables it by spending its ad dollars on platforms which facilitate fake news vs news media that invests in journalism.

— Sinead Boucher (@sineadboucher) August 16, 2020

Boycott

Unfortunately the boycott campaign is already losing steam. The vast bulk of Facebook's revenue comes not from big corporates, but from tens of millions of smaller advertisers – local businesses, online retailers, political parties. (Disclosure: The Spinoff remains a Facebook advertiser).

That makes its revenue far more sturdy than other media companies, like TV channels, which are more reliant on national brand campaigns. Indeed, despite the boycott, Facebook's stock hit a record high after it announced a profit of more than $7.5bn in its most recent quarterly earnings (you read that right: it made that much money in just three months, during a pandemic).

Which begs the question – why doesn't Facebook do more to combat the worst excesses of its users? As The Spinoff's editor Toby Manhire pointed out during a recent episode of our Gone By Lunchtime podcast, it has all the systems for perfect contact tracing of viral misinformation. It can see exactly who posted the original rumour, and how it spread. In fact, the page that seems to have launched the rumour onto Facebook is still live. It has 3,000 followers and describes itself as a "newsagent", despite a lengthy history composed nearly entirely of racist memes.

A source at Facebook says that the page has been blocked from posting new content while it works to identify its admins – a necessary but hardly sufficient response. Still, the most recent public post dates to Sunday afternoon – 24 hours after the government had to lead a live press conference with a denial of the appalling and baseless rumour which convulsed an anxious nation.

That final post concerns the same subject as the conspiracy theory that went viral. Rather than resiling from it, or feeling remorse, the page's administrators adopt a defiant pose. It says, with an air of menace, that "the rumour mill will work overtime whether you like that or not". At this point, human nature being what it is, that's undeniably true.

But as we stare down a pandemic which is made harder to fight by the wildfires of social media, it's long past time to ask ourselves as a society whether we should continue to accept an epic political shrug in response.

Advertisement
Advertise with NZME.
Save

    Share this article

Latest from Business

Premium
Manufacturing

One of our newest knights and his incredible backstory of creating a $660m company in his garage

02 Jun 05:23 AM
Business

2300sq m of prime Auckland land selling for $2.5m - plus 15 cars if you can find them under the mess

02 Jun 03:30 AM
Premium
Opinion

Peter Simunovich: Mental health support at work is not optional

02 Jun 12:00 AM

Deposit scheme reduces risk, boosts trust – General Finance

sponsored
Advertisement
Advertise with NZME.

Latest from Business

Premium
One of our newest knights and his incredible backstory of creating a $660m company in his garage

One of our newest knights and his incredible backstory of creating a $660m company in his garage

02 Jun 05:23 AM

'I don’t care if it’s Martha Stewart or the bloody Pope. I’m not taking [Made in NZ] off.'

2300sq m of prime Auckland land selling for $2.5m - plus 15 cars if you can find them under the mess

2300sq m of prime Auckland land selling for $2.5m - plus 15 cars if you can find them under the mess

02 Jun 03:30 AM
Premium
Peter Simunovich: Mental health support at work is not optional

Peter Simunovich: Mental health support at work is not optional

02 Jun 12:00 AM
Premium
On The Up: Small Business - Giftbox Boutique’s journey from garage start-up to pandemic success

On The Up: Small Business - Giftbox Boutique’s journey from garage start-up to pandemic success

01 Jun 09:00 PM
Gold demand soars amid global turmoil
sponsored

Gold demand soars amid global turmoil

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • What the Actual
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven CarGuide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP