More than half of UK adults have encountered potentially fraudulent adverts online, and over a third see them often – prompting Ofcom to demand that the biggest tech platforms finally take action.
The regulator has published draft measures requiring platforms such as YouTube, Instagram and TikTok to stamp out scam adverts under the Online Safety Act. Firms that fail to comply could face fines of up to £18m or 10% of their global turnover, whichever is greater.
“Ofcom proposes forcing tech giants to tackle scam ads or face fines up to £18m or 10% of global turnover.”
“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 rules target paid-for content that misleads or tricks viewers into parting with cash. Ofcom said it would mandate that tech firms ban users who post scams, prevent them from creating new accounts, and stop them from impersonating legitimate businesses. Griffiths added: “Platforms should not drag their heels – they can start making improvements for their users now. And sites and apps that fail to meet their legal duties, once in force, can expect to face serious consequences.”
Ofcom has also published its register of “categorised services” under the Online Safety Act. Category 1 platforms – which face the toughest additional requirements due to their size and popularity – 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 scam adverts remain live.
The crackdown comes as concerns grow over the prevalence of fraudulent advertising. On Friday the UK’s advertising watchdog warned that claims in adverts for portable air conditioning units on Facebook and YouTube were “too good to be true”. 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.
While Ofcom has faced calls to act, some of its powers have been tied up with rules for categorised services that have not yet been enforced. If the draft measures become law, the onus will shift firmly onto the tech giants. As Griffiths put it: they can start now, or face the consequences later.