New Bipartisan Bill Aims to Tackle Scam Ads on Social Media Platforms
In a bid to protect consumers from online scams, two bipartisan senators have introduced legislation that would require social media platforms to crack down on fraudulent ads. The Safeguarding Consumers from Advertising Misconduct (SCAM) Act aims to hold companies accountable for the money lost due to deceptive online ads.
According to a report by Reuters last November, Meta estimated that up to 10% of its 2024 revenue came from scam ads, amounting to approximately $16 billion. The company reportedly calculated this figure after assessing fraudulent e-commerce and investment schemes, illegal online casinos, and the sale of banned medical products.
The problem is further complicated by Meta's policy of not blocking small fraudsters until their ads were flagged at least eight times. Meanwhile, bigger spenders accrued at least 500 strikes without being removed. Executives reportedly grappled with how to tackle the issue without affecting the company's bottom line. They were even told not to take action that could cost Meta more than 0.15% of its total revenue.
The bill's sponsors argue that social media companies have a responsibility to ensure their ads are not fraudulent. "If a company is making money from running ads on their site, it has a responsibility to make sure those ads aren't fraudulent," said Senator Ruben Gallego. "This bipartisan bill will hold social media companies accountable and protect consumers' money online."
Senator Bernie Moreno added that protecting American consumers from deceptive ads is crucial. "We can't sit by while social media companies have business models that knowingly enable scams that target the American people." The bill aims to address this issue and provide meaningful deterrents for companies that fail to crack down on fraudulent ads.
If passed, the SCAM Act would give the Federal Trade Commission (FTC) and state attorneys general the authority to take civil legal action against social media platforms that fail to prevent fraudulent or deceptive ads. This legislation seeks to restore trust in online advertising and safeguard consumers from financial losses due to scams.
In a bid to protect consumers from online scams, two bipartisan senators have introduced legislation that would require social media platforms to crack down on fraudulent ads. The Safeguarding Consumers from Advertising Misconduct (SCAM) Act aims to hold companies accountable for the money lost due to deceptive online ads.
According to a report by Reuters last November, Meta estimated that up to 10% of its 2024 revenue came from scam ads, amounting to approximately $16 billion. The company reportedly calculated this figure after assessing fraudulent e-commerce and investment schemes, illegal online casinos, and the sale of banned medical products.
The problem is further complicated by Meta's policy of not blocking small fraudsters until their ads were flagged at least eight times. Meanwhile, bigger spenders accrued at least 500 strikes without being removed. Executives reportedly grappled with how to tackle the issue without affecting the company's bottom line. They were even told not to take action that could cost Meta more than 0.15% of its total revenue.
The bill's sponsors argue that social media companies have a responsibility to ensure their ads are not fraudulent. "If a company is making money from running ads on their site, it has a responsibility to make sure those ads aren't fraudulent," said Senator Ruben Gallego. "This bipartisan bill will hold social media companies accountable and protect consumers' money online."
Senator Bernie Moreno added that protecting American consumers from deceptive ads is crucial. "We can't sit by while social media companies have business models that knowingly enable scams that target the American people." The bill aims to address this issue and provide meaningful deterrents for companies that fail to crack down on fraudulent ads.
If passed, the SCAM Act would give the Federal Trade Commission (FTC) and state attorneys general the authority to take civil legal action against social media platforms that fail to prevent fraudulent or deceptive ads. This legislation seeks to restore trust in online advertising and safeguard consumers from financial losses due to scams.
. I mean, Meta's estimated $16 billion revenue from scam ads? That's just outrageous! It's like they're saying "hey, as long as we get paid, who cares if our users are getting scammed?" 
I totally get why they're introducing this bill 
. I mean, can you imagine if you clicked on an ad thinking it was a legit deal for a new phone, but it's actually a scam that steals your credit card info 
? It's crazy to think about how much money is lost due to these ads.
. They're already working hard to protect consumers from scams in other ways, so it's good they have more tools at their disposal 
.
. I hope this bill passes and we can start seeing some real change in the way these platforms handle scam ads 
.
10% of Meta's 2024 revenue is basically just scam money 
Meanwhile, these small-time scammers get away with not being blocked until they've already duped hundreds of people... meanwhile bigger spenders are basically getting a free pass to scam as much as they want 
. The fact that Meta is more worried about not losing 0.15% of their revenue than stopping the scams is just wild 
. We need stricter regulation ASAP! 
Social media companies making billions from scam ads is wild 
. It's all about the benjamins 
.
They're literally ruining it for the rest of us who just want to have a chill online experience without getting scammed out of our hard-earned cash 
.
how can they just let it slide till ads get flagged like 8 times? sounds like they're more worried about their bottom line than people's money 
. It's about time they step up and do something to protect consumers. I don't think it's right that these big companies can just ignore the issue and risk losing money if they're not careful 
.
. It's about time we saw some real change in the way these companies operate 
.
. Don't get me wrong, scam ads are a real problem, but do we really need a law to tell them what to do? Can't they just use their own internal processes to figure it out? And 0.15% of revenue is a pretty low threshold to start cracking down on scammers... doesn't that feel like a way to let the big spenders slide while still making money from the ads? 
. I mean, if a company is making money from scam ads, shouldn't they be doing more to stop it? 
anyway, i think this bipartisan bill sounds good 
holdin social media companies accountable 4 scam ads is a must 
back in 2018 
.
.
I'm so tired of seeing fake ads on my feeds 
!
.