The SCAM Act empowers the Federal Trade Commission (FTC) to enforce regulations against online platforms that fail to comply with the new requirements aimed at reducing deceptive advertising. If an online platform is found guilty of featuring such advertisements, the FTC can impose civil penalties, and state attorneys general are authorized to take action on behalf of residents affected by these misleading ads. This dual-layer enforcement intends to elevate the standards for advertising practices online and enhance consumer protections throughout the digital landscape.
Summary
House Bill 7548, known as the Safeguarding Consumers from Advertising Misconduct Act (SCAM Act), aims to address the widespread issue of fraudulent and deceptive advertisements appearing on online platforms. The bill highlights the alarming rates of scams reported, particularly among younger demographics, and stipulates that online platforms must take specific actions to prevent such deceptive advertising. Online platforms are mandated to establish verification procedures, including verifying advertisers' identities and implementing systems for detecting and mitigating fraudulent advertisements.
Contention
There are notable points of contention surrounding the bill, particularly regarding the responsibilities placed on online platforms. While proponents argue that these regulations are necessary to protect consumers from scams that exploit the current porous advertising landscape, critics express concerns about the feasibility of compliance, potential overreach, and the implications for free speech online. Furthermore, the bill specifies that it does not preempt or affect existing state or local laws, thereby maintaining a balance between federal oversight and local regulations.
A resolution designating March 5, 2026, as "National Slam the Scam Day" to raise awareness about pervasive scams and to prevent government imposter scams and other types of scams by promoting education about such scams.
A resolution designating March 6, 2025, as "National Slam the Scam Day" to raise awareness about pervasive scams and to promote education to prevent government imposter scams and other types of scams.
Requires social-media platforms to prevent, detect, and remove fraudulent advertisements and to establish advertiser-vetting obligations; requires reporting to the attorney general.
Requires social-media platforms to prevent, detect, and remove fraudulent advertisements and to establish advertiser-vetting obligations; requires reporting to the attorney general.
Enacts the "stopping abuse and fraud enabled by (SAFE) platforms act"; requires a mechanism for users to report fraudulent content; prohibits platforms recommending, promoting, curating, prioritizing, or displaying fraudulent content for delivery to a user if it knows or has reason to know that the content is fraudulent.
Enacts the "stopping abuse and fraud enabled by (SAFE) platforms act"; requires a mechanism for users to report fraudulent content; prohibits platforms recommending, promoting, curating, prioritizing, or displaying fraudulent content for delivery to a user if it knows or has reason to know that the content is fraudulent.