More than half of UK adults have stumbled across a potentially fraudulent advert online – and more than a third see them often, according to Ofcom. Now the regulator has proposed forcing the tech giants that host them to act, or face fines of up to £18m or 10% of global turnover.
Platforms such as YouTube, Instagram and TikTok will need to take action to deal with scam adverts under draft measures published by Ofcom. The regulator says it is using powers under the Online Safety Act (OSA) to target paid-for content that misleads or tricks viewers into handing over money.
“Ofcom proposes tech giants must tackle fraudulent ads or face fines of £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 proposals would require tech firms to ban those who post scams and prevent them from creating new accounts, as well as tackling accounts that impersonate real businesses. “Platforms should not drag their heels – they can start making improvements for their users now,” Griffiths added. “And sites and apps that fail to meet their legal duties, once in force, can expect to face serious consequences.”
The clampdown comes after a series of high-profile incidents. On Friday the UK’s advertising watchdog warned that claims in adverts for some portable air conditioning units shown 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.
Ofcom has published a register of “categorised services” that will face the toughest additional requirements under the OSA, including for fraudulent ads. Category 1 platforms – those deemed largest and most popular – include Facebook, Instagram, Pinterest, Quora, Reddit, Roblox, Snapchat, TikTok, WhatsApp, X and YouTube. The regulator said it is also monitoring Apple’s dedicated service, though details were not included in the published register.
Categorised services must have systems in place to prevent users from encountering fraudulent ads, swiftly remove reported content, and minimise how long such content stays up. The draft measures are now open for consultation; if they pass into law, firms that fail to comply could face fines that hit them where it hurts – £18m or 10% of global turnover, whichever is greater.
