Ofcom Proposes New Rules for Tech Platforms to Combat Scam Ads

Platforms like YouTube, Instagram and TikTok will need to take action to deal with scam adverts, under new proposals from Ofcom.

The regulator has published draft measures it says big tech should take to protect people from falling victim to fraudulent ads online - along with a list of services which will face more responsibilities under the Online Safety Act (OSA).

It says more than half of UK adults have come across potentially fraudulent ads online, with over a third seeing them often.

If the draft measures pass into law, firms which fail to comply could be made to pay £18m or 10% of global turnover - whichever is greater.

"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's proposed measures are targeting content which advertises products or services in a way that misleads or tricks viewers.

It said this includes mandating tech firms ban those who post scams and prevent them from creating new accounts, as well as those who impersonate 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."

Paid-for false advertising which convinces people to part with cash has become a familiar part of everyday life online.

On Friday the UK's advertising watchdog warned claims in adverts for some portable air conditioning units, shown on Facebook and YouTube, were "too good to be true".

Concerns were also raised in early June over a series of adverts on X containing fake AI-generated images of Reform leader Nigel Farage fighting Bank of England governor Andrew Bailey.

While Ofcom has faced calls to take action on the issue, some of its powers to do so are bound up with rules for categorised services that have not yet been enforced.

Platforms face additional transparency and accountability requirements if they fall under Category 1, 2A and 2B, under the OSA.

Category 1 services, which comprise the UK's largest and most popular platforms, must have systems in place to prevent users from encountering fraudulent ads and swiftly remove reported content.

They must also minimise how long the content is up on their services.

Ofcom has now published a list of services it feels should face the toughest additional requirements, including for dealing with fraudulent ads.

These are Facebook, Instagram, Pinterest, Quora, Reddit, Roblox, Snapchat, TikTok, WhatsApp, X and YouTube.

It says it is also monitoring Apple's dedicated messaging service iMessage, Meta's Messenger and Threads, and Wikipedia as potential "emerging Category 1 services".