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

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.