Tech giants could be forced to pay up to £18m or 10% of their global turnover – whichever is greater – if they fail to take action against fraudulent adverts under new proposals from Ofcom. The regulator has published draft measures that would require platforms such as YouTube, Instagram and TikTok to tackle scam ads, which it says more than half of UK adults have encountered online, with over a third seeing them often.
“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 Ofcom online safety director Oliver Griffiths. “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 requiring big tech to combat scam ads, with fines of up to £18m or 10% of global turnover.”
The proposals, published under the Online Safety Act, target content that misleads or tricks viewers. They would require tech firms to ban those who post scams, prevent them from creating new accounts, and clamp down on accounts impersonating real 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.”
The urgency of the issue was highlighted by recent examples. 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”. Earlier in 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 now published its register of categorised services under the OSA. 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 it remains online.
While Ofcom has faced calls to take action, some of its powers remain bound up with rules for categorised services that have not yet been enforced. The draft measures now enter a consultation period before they can become law.