US bipartisan senate bill targets surge in social media scam ads

A bipartisan group of US Senators introduced a significant piece of legislation aimed at disrupting the rising wave of fraudulent advertising on digital platforms. This bill would require social media platforms to take “reasonable steps” to combat these activities or face legal action by the Federal Trade Commission.

Moreno, a Republican from Ohio said in a statement, “We can’t sit by while social media companies have business models that knowingly enable scams that target the American people.”

The legislation is endorsed by the American Bankers Association and various consumer advocacy organizations. This initiative urges social media platforms to verify the government-issued identification of advertisers or the legal status of their businesses.

According to Reuters, the bill follows a series of reports regarding scams targeting both individual users and government entities.

The legislation comes at a time when Meta has acknowledged a global push by regulators to crack down on social media scams. However, internal documents recently revealed that the company developed a global “regulatory playbook” aiming at stalling or weakening advertiser verification requirements to protect and revenue. 

In line with a Meta spokesman’s remarks, such verification requirements were “not a silver bullet” and the company is closely working with regulators on anti-scam initiatives. Nonetheless, Meta maintains that these efforts are part of a broader strategy to reduce fraudulent activity on its platforms.