Tech giants face £18m fines if they fail to tackle scam ads under Ofcom plans

More than half of UK adults have encountered potentially fraudulent ads online, and under new proposals from Ofcom, platforms like YouTube, Instagram and TikTok will be forced to act – or face fines of up to £18m or 10% of global turnover. For too long, victims have been exposed to scam ads with tech giants not doing enough to combat fraudsters, 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,” he added. The regulator’s draft measures target content that misleads or tricks viewers, including paid-for false advertising that convinces people to part with cash. Proposed rules would mandate tech firms ban those who post scams, prevent them from creating new accounts, and remove those who impersonate real businesses. Griffiths warned: “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.” The draft measures, published under the Online Safety Act, would require categorised services – including Category 1 platforms such as Facebook, Instagram, Pinterest, Quora, Reddit, Roblox, Snapchat, TikTok, WhatsApp, X and YouTube – to have systems to prevent users from encountering fraudulent ads, swiftly remove reported content, and minimise how long the content stays up. The move comes after the UK’s advertising watchdog last Friday warned that claims in ads for some portable air conditioning units 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 also said it is monitoring Apple’s dedicated store, but the full list of services that will face additional responsibilities is now public. If the draft measures become law, firms that fail to comply could be made to pay £18m or 10% of global turnover – whichever is greater. Over a third of UK adults say they see potentially fraudulent ads often, according to Ofcom. The regulator has faced calls to take action, but some of its powers are bound up with rules for categorised services that have not yet been enforced. Whether platforms will now move quickly enough to protect users – or wait for the threat of massive fines – remains to be seen.