Tech giants including YouTube, Instagram and TikTok will be forced to take action against fraudulent adverts or face fines of up to £18 million or 10% of global turnover, under draft measures published by Ofcom on Friday.
The regulator’s proposals, drawn up under the Online Safety Act, target misleading paid-for content that tricks users into parting with money. Ofcom said more than half of UK adults have encountered potentially fraudulent ads online, with over a third seeing them often.
“Ofcom proposes fines up to £18m or 10% turnover for platforms failing to tackle scam ads.”
“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.”
The proposed measures require platforms to ban those who post scams, prevent them from creating new accounts, and stop impersonation of real businesses. The move follows a string of warnings about deceptive adverts: on Friday the UK’s advertising watchdog flagged claims for portable air conditioning units on Facebook and YouTube as “too good to be true”, while in early June concerns were raised over adverts on X containing fake AI-generated images of Reform leader Nigel Farage fighting Bank of England governor Andrew Bailey.
Ofcom has also published its register of categorised services under the Online Safety Act. The 11 platforms facing the toughest additional requirements – Category 1 – include Facebook, Instagram, Pinterest, Quora, Reddit, Roblox, Snapchat, TikTok, WhatsApp, X and YouTube. These services must have systems to prevent users from encountering fraudulent ads, swiftly remove reported content, and minimise how long harmful material stays online.
“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.”
Ofcom is also monitoring Apple’s dedicated app store, though it has not yet been categorised. The draft measures are now open for consultation; if they become law, non-compliant firms could be fined £18 million or 10% of global turnover – whichever is greater.