 Without meaningful deterrents, Big Tech companies will do what's profitable, regardless of the cost to consumers. But a new bipartisan bill could add a check that would make them think twice, at least in one area. On Wednesday, Senators Ruben Gallego (D-AZ) and Bernie Moreno (R-OH) introduced legislation that would require social platforms to crack down on scam ads.
The Safeguarding Consumers from Advertising Misconduct (SCAM) Act would require platforms to take reasonable steps to prevent fraudulent or deceptive ads that they profit from. If they don't, the Federal Trade Commission (FTC) and state attorneys general could take civil legal action against them.
The bill's sponsors, Ruben Gallego (L) and Bernie MorenoRuben Gallego (Bluesky) / Bernie MorenoThe backdrop to the SCAM Act is a Reuters report from last November. Meta reportedly estimated that up to 10 percent of its 2024 revenue came from scam ads. The company is said to have calculate
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