More than half of UK adults have encountered potentially fraudulent adverts online, with over a third seeing them often, according to Ofcom. The regulator has now published draft measures that would force platforms like YouTube, Instagram and TikTok to take robust action against scam ads or face fines of up to £18m or 10% of global turnover – whichever is greater.
“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,” said Oliver Griffiths, Ofcom’s online safety director. “We expect firms to take robust action to stamp out scam ads and boot out the bad actors behind them to safeguard their users.”
“Ofcom proposes new measures requiring tech giants to tackle scam ads or face fines of up to £18m.”
The proposed rules, issued under the Online Safety Act, target ad content that misleads or tricks viewers. They would require tech firms to ban those who post scams, prevent them from creating new accounts, and remove impersonators of legitimate businesses. “Platforms should not drag their heels – they can start making improvements for their users now,” Griffiths said. “And sites and apps that fail to meet their legal duties, once in force, can expect to face serious consequences.”
Paid-for false advertising convincing people to part with cash has become a familiar part of daily online life. On Friday, the UK’s advertising watchdog warned that claims in adverts for some portable air conditioning units on Facebook and YouTube were “too good to be true”. In early June, concerns were raised over a series of adverts on X containing fake AI-generated images of Reform leader Nigel Farage fighting Bank of England governor Andrew Bailey.
While Ofcom has faced calls to act, some of its powers are tied to rules for categorised services that have not yet been enforced. Under the Online Safety Act, platforms face additional transparency and accountability requirements if they fall under Category 1, 2A or 2B. These services must have systems to prevent users from encountering fraudulent ads, swiftly remove reported content, and minimise how long scam ads remain visible.
Ofcom has now published its register of categorised services, naming Category 1 platforms – those it believes should face the toughest additional requirements due to their size and popularity. The list includes Facebook, Instagram, Pinterest, Quora, Reddit, Roblox, Snapchat, TikTok, WhatsApp, X and YouTube. The regulator said it is also monitoring Apple’s dedicated service.
The draft measures are open for consultation before they can become law. If passed, tech giants that fail to comply could face the hefty fines – but enforcement remains contingent on the finalisation of the Online Safety Act’s categorisation rules.