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Tech Giants Face Crackdown on Scam Ads
10 Jul
Summary
- Regulator Ofcom proposes new measures against fraudulent online ads.
- Non-compliant platforms face potential £18m fines or 10% global turnover.
- Measures target misleading ads and impersonations of businesses.
Major online platforms, including YouTube, Instagram, and TikTok, will soon face stricter regulations concerning scam advertisements. Regulator Ofcom has published draft measures designed to compel these big tech companies to actively protect users from fraudulent online ads. This initiative comes as a response to widespread public exposure to scams, with over half of UK adults reporting encounters with such content.
The proposed measures under the Online Safety Act mandate that these platforms take robust action. This includes banning individuals and entities known for posting scams and preventing them from creating new accounts. Additionally, platforms will be required to tackle ads that impersonate legitimate businesses. Failure to comply with these new rules could result in substantial financial penalties, potentially reaching £18 million or 10% of a company's global turnover, whichever amount is greater.
