SYDNEY, July 12 (Reuters) - Australia plans to introduce

a law by the end of the year forcing internet companies to

proactively stop hosting scams or face hefty fines, the top

consumer regulator said on Friday, potentially setting up

another showdown with Big Tech.

The Australian Competition and Consumer Commission (ACCC)

and the treasury department are consulting internet, banking and

telecommunications firms about creating a mandatory, enforceable

anti-scam code which legally requires them take reasonable steps

to protect users, including offering an effective complaint

service.

In Australia, cryptocurrency scam advertisements featuring

the face of mining billionaire Andrew Forrest have led to

Australians losing millions of dollars, according to Forrest. He

is suing Facebook owner Meta over the advertisements in

California after saying he was unable to force Meta to take

action domestically.

Currently only telecommunications providers face specific

anti-scam regulation in Australia, according to the government.

But the amount lost by Australians to scams tripled to A$2.7

billion ($1.8 billion) from 2020 to 2023, in line with global

trends, as the pandemic sent more people online.

That prompted the ACCC to push for new laws making all

participating industries accountable. Putting legal liability on

internet platforms may create a new point of conflict between

Australia and an industry that has typically leaned on U.S.

laws, which largely exempt them from responsibility.

Already, a law designed by the ACCC forcing internet

companies to pay media companies licensing fees for links to

content has resulted in Meta saying it may block media content

on Facebook in Australia.

"We are hoping to see them being rolled out in the course of

this period to the end of this year," ACCC Chair Gina

Cass-Gottlieb said by phone, referring to mandatory anti-scam

codes applying to each industry.

"We do need, we think, very clear and specific enforceable

legal obligations."

Failure to comply with the codes would subject companies to

fines of A$50 million, three times the benefit gained by

wrongdoing or 30% of turnover at the time it took place, the

treasury department has said.

The ACCC is separately suing Meta for what it says is a

failure to stop the publication of advertisements for

cryptocurrency scams featuring faces of prominent Australians,

including Forrest.

Meta is defending the case the ACCC filed in March 2022 and

which is still at a pre-trial stage. Cass-Gottlieb said a

mandatory code would reduce the need for "backward-looking" and

time-consuming court enforcement that involved investigation,

preparation and resolution of a lawsuit, plus appeals.

Meta declined to comment on the anti-scam code's timing. The

company said in a submission in January it wanted a voluntary

code and the planned mandatory code might result in companies

prioritising compliance over innovation.

($1 = 1.4793 Australian dollars)