"We can't sit by while social media companies have business models that knowingly enable scams that target the American people,"
"If a company is making money from running ads on their site, it has a responsibility to make sure those ads aren't fraudulent,"
"We aggressively fight fraud and scams because people on our platforms don't want this content, legitimate advertisers don't want it and we don't want it either,"
"Some online platforms have abandoned tighter advertiser verification processes to avoid driving away profits from advertisers."
The bipartisan Safeguarding Consumers from Advertising Misconduct Act (SCAM Act) would require social media platforms to take reasonable steps to combat fraudulent advertising or face legal action by the Federal Trade Commission and state attorneys general. The bill characterizes weaker advertiser verification as a profit-preserving choice that enables online scams and advertising-related fraud. Internal documents reportedly indicated a major platform expected significant revenue from ads tied to scams and illicit products, while the platform disputed that estimate and emphasized ongoing efforts to fight fraud. The bill targets platform responsibilities and potential enforcement mechanisms.
Read at Newsmax
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