U.S. Senators Gallego and Moreno Introduce SCAM Act to Combat Fraudulent Ads

Senators Gallego and Moreno introduced a bipartisan bill, the SCAM Act, to compel social media platforms to verify advertisers and combat fraudulent ads. The bill, supported by various advocacy groups, comes amid reports of platforms like Meta earning significant revenue from scam ads, drawing scrutiny from regulators.

U.S. Senators Ruben Gallego and Bernie Moreno have unveiled new bipartisan legislation aimed at tackling fraudulent advertising on social media. The proposed bill, dubbed the Safeguarding Consumers from Advertising Misconduct Act or SCAM Act, mandates platforms to conduct rigorous checks on advertisers or face legal penalties.

Spearheaded by Moreno and Gallego, the initiative seeks to hold social media companies accountable, especially those profiting from deceitful practices targeting American consumers. A November report highlighted that Meta Platforms expected a substantial chunk of its 2024 revenue from scams and illicit ads, prompting senators to demand regulatory probes.

Endorsed by the American Bankers Association and consumer advocacy groups, the legislation emphasizes the verification of advertisers and swift action against reported scams. This drive arrives amid a global regulatory push, as companies like Meta confront evolving demands to mitigate online advertising fraud.