Major technology platforms, including YouTube, Instagram, and TikTok, will be required to take action against scam advertisements under new proposals from the UK's communications regulator, Ofcom. The draft measures aim to protect consumers from falling victim to fraudulent ads online.
According to Ofcom, more than half of UK adults have encountered potentially fraudulent advertisements, with over a third seeing them frequently. The proposed regulations, part of the Online Safety Act, would impose significant responsibilities on tech companies.
Firms that fail to comply with the new rules could face penalties of up to \u00a318 million or 10% of their global turnover, whichever is greater. Oliver Griffiths, Ofcom's online safety director, stated that for too long, victims have been exposed to scam ads with insufficient action from tech giants.
"We expect firms to take robust action to stamp out scam ads and boot out the bad actors behind them to safeguard their users," Griffiths said. The proposed measures specifically target advertisements that mislead or deceive viewers about products or services. This includes mandating that tech firms ban individuals and entities responsible for posting scams and prevent them from creating new accounts. Companies will also be required to take action against those who impersonate legitimate businesses.
Griffiths urged platforms to begin implementing improvements immediately. "And sites and apps that fail to meet their legal duties, once in force, can expect to face serious consequences," he added. The regulator has identified a list of services that will face increased responsibilities under the Online Safety Act.