Sens. Ruben Gallego (D-Ariz.) and Bernie Moreno (R-Ohio) have joined forces to tackle the growing issue of fraudulent and deceptive online advertisements. In a bipartisan effort, the two lawmakers have introduced the Safeguarding Consumers from Advertising Misconduct (SCAM) Act, which aims to protect consumers from falling victim to scams and fraudulent practices on online platforms, including social media.
The rise of digital advertising has brought about various benefits, such as targeted marketing and increased accessibility for businesses. However, it has also opened the door for unscrupulous individuals and organizations to exploit unsuspecting consumers through fraudulent advertisements. These ads often promise unrealistic results or promote fake products, leaving consumers with empty pockets and disappointment.
According to Sen. Gallego, these predatory online scam advertisements have cost Americans billions of dollars in recent years. “The internet should be a safe place for consumers, but unfortunately, it has become a breeding ground for scammers and fraudsters,” he said. “We need to take action to protect consumers and hold online platforms accountable for allowing these deceptive ads to reach their users.”
The SCAM Act would require online platforms to take “reasonable steps” to prevent fraudulent or deceptive advertisements from reaching consumers. This includes implementing policies and procedures to detect and remove such ads, as well as providing consumers with a clear and accessible way to report suspicious or misleading content.
Sen. Moreno emphasized the importance of holding online platforms accountable for the content they allow to circulate on their platforms. “These companies have a responsibility to their users to ensure that the ads they see are legitimate and not designed to scam them,” he stated. “By requiring them to take proactive measures against fraudulent advertisements, we can protect consumers and restore their trust in online platforms.”
The legislation also includes provisions for the Federal Trade Commission (FTC) to investigate and penalize online platforms that fail to comply with the new regulations. This would serve as a deterrent for platforms to turn a blind eye to fraudulent ads and instead take swift action to remove them.
The introduction of the SCAM Act has received support from consumer advocacy groups, including the National Consumers League. “We applaud Sens. Gallego and Moreno for their efforts to protect consumers from deceptive online advertisements,” said John Breyault, Vice President of Public Policy, Telecommunications and Fraud at NCL. “This legislation is a step in the right direction towards holding online platforms accountable for the ads they allow on their platforms and ensuring a safer online environment for consumers.”
The SCAM Act has also garnered bipartisan support from other lawmakers, including Rep. Tony Cárdenas (D-Calif.) and Rep. Michael Waltz (R-Fla.), who have introduced companion legislation in the House of Representatives.
In addition to protecting consumers, the SCAM Act would also benefit legitimate businesses by leveling the playing field and preventing fraudulent ads from overshadowing their legitimate promotions. This would ultimately create a more trustworthy and fair online marketplace for both consumers and businesses alike.
In conclusion, the SCAM Act is a crucial step towards safeguarding consumers from fraudulent and deceptive online advertisements. With bipartisan support and backing from consumer advocacy groups, it is hoped that this legislation will be passed and implemented swiftly to protect the public from falling victim to online scams. As Sen. Gallego stated, “It’s time to put an end to these predatory online scam advertisements and give consumers the protection they deserve.”
