UK plans to force big tech platforms to ban scam ads
Ofcom, the UK communications regulator, has proposed new measures requiring major online platforms such as Facebook, Instagram and X to block fraudulent advertisers and prevent them from creating new accounts, as part of the next phase of the Online Safety Act to tackle online fraud.
The UK's communications regulator Ofcom has announced proposals that would require major tech platforms including Facebook, Instagram, Snapchat, X and YouTube to ban fraudulent advertisers. These measures are part of the next phase of implementing the Online Safety Act (OSA), aimed at combating online fraud.
Ofcom calls for platforms to take several steps: reduce the risk of account hijacking, ensure that ads for banking and financial services have legal clearance, and provide law enforcement channels for identifying fraudulent ads. The new requirements apply to large "category 1" platforms such as Instagram, X, Google, and ChatGPT.
Oliver Griffiths, Ofcom's online safety group director, said tech companies had not done enough to combat fraudsters. "We expect firms to take robust action to stamp out scam ads and boot out the bad actors behind them to safeguard their users," he said.
Once the measures come into effect and become legally binding under the OSA, failure to comply could result in fines of up to 10% of a platform's global revenue. Ofcom urged firms to improve their anti-fraud measures immediately, but the consultation on specific steps launched on Friday closes in October, with final decisions expected next year.
The consumer group Which? welcomed the proposals while accusing tech firms of treating scam ads as a "profitable income stream." However, it expressed concerns that measures would not be implemented until next year. Rocio Concha, head of policy and advocacy at Which?, said: "This is very problematic at a time when breakneck advances in AI are making scams more sophisticated than ever."
The Bank of England warned the public last month against falling for AI-generated scams after deepfake videos of Nigel Farage fighting its governor spread online. Finance expert Martin Lewis has repeatedly urged the government to tackle scam ads that use his image.
In addition to anti-scam rules, Ofcom also set out draft rules for category 1 platforms on the treatment of journalistic content. These include ensuring that social media platforms do not arbitrarily restrict access to news content and "content of democratic importance," giving news publishers the opportunity to state their case before content is removed, labeled or downranked, and offering an expedited complaints process for journalistic content.
Ofcom also proposed that category 1 platforms limit user exposure to content featuring suicide, self-harm, eating disorders, and hate and abuse. Users must be given the option to reduce their exposure to this content, such as removing it entirely or blurring it. They must also be able to block or mute other users and filter out interactions with non-verified accounts.
The list of category 1 platforms includes Facebook, Instagram, Pinterest, Quora, Reddit, Roblox, Snapchat, TikTok, WhatsApp, X, and YouTube. Wikipedia, which had warned that classifying it as a category 1 service would affect its UK operations, did not make the list but has been defined as an "emerging category 1" platform that is not subjected to any restrictions.
