More than half of UK adults have encountered potentially fraudulent ads online, with over a third seeing them often, according to Ofcom – and the regulator has now drawn up draft measures that would force platforms such as YouTube, Instagram and TikTok to take action or face fines of up to £18m or 10% of global turnover.
Ofcom published its proposals on Thursday, targeting paid-for content that misleads or tricks viewers. The draft rules, which would be enforced under the Online Safety Act, require tech firms to ban those who post scams, prevent them from creating new accounts, and crack down on accounts that impersonate real businesses.
“Ofcom proposes measures forcing tech giants to tackle scam ads or face fines of up to £18m.”
“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.”
Platforms found to be in breach of the measures, once they become law, could face a penalty of £18m or 10% of global annual turnover, whichever is greater. “Platforms should not drag their heels – they can start making improvements for their users now,” Griffiths added, warning that “sites and apps that fail to meet their legal duties, once in force, can expect to face serious consequences.”
The regulator has also published its register of categorised services under the Online Safety Act, which includes Category 1 platforms that face the toughest additional requirements because of their size and popularity. These are Facebook, Instagram, Pinterest, Quora, Reddit, Roblox, Snapchat, TikTok, WhatsApp, X and YouTube. They must have systems in place to prevent users from encountering fraudulent ads and swiftly remove reported content, as well as minimise how long scam adverts remain visible.
The move follows a series of high-profile incidents. On Friday, the UK’s advertising watchdog warned that claims in adverts for 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.
Paid-for false advertising that tricks people into handing over cash has become a familiar part of everyday life online, and Ofcom has faced calls to take action. Some of its powers are tied to the categorisation rules – which have now been published – and the regulator expects firms to start making changes immediately rather than waiting for the rules to come into force.