Ofcom Proposes New Rules to Combat Scam Ads on Major Platforms
Ofcom has outlined nearly 40 new measures aimed at reducing fraudulent advertising on social media and search platforms as part of implementing the Online Safety Act. This includes two full consultation documents, one on fradulent advertising and another on additional duties for Category 1 services.
The draft code targets major platforms, including those in Category 1 and Category 2a, and requires stronger action against scam ads. Proposed requirements include banning accounts that post scam advertisements, preventing bad actors from creating new accounts, and verifying that advertisers for financial or investment services are properly registered.
Additional measures involve enhanced security to prevent account hijacking, rigorous testing of AI advert-making tools to reduce misuse, and dedicated channels for law enforcement to report and quickly remove scam content. Ofcom also plans to consult later this year on proactive technology solutions to filter fraudulent ads at source.
The regulator noted that over half of UK adults have encountered potentially fraudulent ads online, with an estimated annual loss to victims exceeding £200 million. Scam ads can cause significant financial and emotional harm.
Ofcom emphasized that platforms should begin implementing improvements immediately rather than waiting for final rules. Once approved, non-compliant companies could face fines of up to £18 million or 10% of global revenue.
The proposals form part of broader Online Safety Act requirements for Category 1 services, which include additional duties related to protecting news content, giving users more control over harmful material, and increasing transparency around risk assessments.
Ofcom’s Online Safety Group Director Oliver Griffiths stated that tech companies have not done enough to protect users from scam ads and must take robust action. The consultation on the fraudulent advertising code is open until October 2, with final decisions expected next year.
