Overview
- Senators Ruben Gallego and Bernie Moreno introduced the Safeguarding Consumers from Advertising Misconduct (SCAM) Act on February 4.
- Platforms would have to verify advertisers’ government-issued ID or a business’s legal existence and promptly review reports from users or authorities.
- Noncompliance would be deemed an unfair or deceptive practice under the FTC Act, enabling enforcement by the FTC and state attorneys general.
- The bill draws support from the American Bankers Association and AARP, with sponsors citing FTC estimates of nearly $19 billion in consumer fraud losses in 2024.
- Sponsors referenced Reuters reporting on Meta’s internal estimates that about 10% of its 2024 revenue came from scam or illicit ads, a figure Meta disputes.