Ofcom proposes new rules for scam ads on major tech platforms
Major tech platforms including YouTube and TikTok will face new rules to combat scam advertisements. Non-compliance could result in fines of up to £18 million or 10% of global turnover.
Leading technology platforms such as YouTube, Instagram, and TikTok will be required to take action against scam advertisements under new proposals from the UK regulator, Ofcom.
The regulator has published draft measures intended to protect the public from fraudulent online ads. According to Ofcom's findings, over half of UK adults have encountered potentially fraudulent ads online, with more than a third seeing them frequently. Should the draft measures become law, companies failing to comply could face penalties of £18 million or 10% of their global annual turnover, whichever sum is greater.
Oliver Griffiths, Ofcom's online safety director, stated, "For too long, victims have been exposed to scam ads online with tech giants simply not doing enough to combat the fraudsters using their platforms." He added, "We expect firms to take robust action to stamp out scam ads and boot out the bad actors behind them to safeguard their users."
The proposed measures target advertisements that mislead or trick viewers into parting with money. This includes mandating that tech firms ban individuals who post scams and prevent them from creating new accounts, as well as those impersonating legitimate businesses. Ofcom is currently consulting the industry and the public on the proposed measures, with the consultation period closing on October 2.
Which? head of policy and advocacy, Rocio Concha, welcomed the proposals as a "significant step" but expressed concern that the timeline leaves consumers unprotected until 2027, especially with the increasing sophistication of AI-generated scams.