More than half of UK adults have encountered potentially fraudulent ads online, Ofcom has revealed, as the regulator unveiled draft measures that could force tech giants to pay up to £18m or 10% of global turnover if they fail to tackle scam advertising on platforms like YouTube, Instagram and TikTok.
The proposals, published under the Online Safety Act, would require platforms to take “robust action” against fraudulent ads, including banning those who post scams, preventing them from creating new accounts, and stopping impersonation of real businesses. “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 crackdown on scam ads; tech firms face fines up to £18m if they fail to act.”
The regulator said more than half of adults have come across potentially fraudulent ads, with over a third seeing them often. Paid-for false advertising has become a familiar part of everyday life online, with recent examples including warnings from the UK’s advertising watchdog over portable air conditioner ads on Facebook and YouTube that were “too good to be true”, and concerns in early June about ads on X containing fake AI-generated images of Reform leader Nigel Farage fighting Bank of England governor Andrew Bailey.
Under the proposals, platforms that fall under Category 1, 2A or 2B of the Online Safety Act face additional transparency and accountability requirements, including systems to prevent users from encountering fraudulent ads, swiftly remove reported content, and minimise how long such content stays up. Ofcom has published its register of categorised services, which includes Facebook, Instagram, Pinterest, Quora, Reddit, Roblox, Snapchat, TikTok, WhatsApp, X and YouTube as Category 1 platforms facing the toughest requirements.
“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.” If the measures pass into law, firms failing to comply could be fined £18m or 10% of global turnover, whichever is greater. Ofcom said it is also monitoring Apple’s dedicated…