Key facts
- Ofcom has proposed new draft measures for large tech platforms to address scam advertisements.
- Platforms like YouTube, Instagram, and TikTok will be required to take action against fraudulent ads.
- Non-compliant firms could face fines of 10% of global turnover or £18 million.
- The proposals include banning persistent scammers and preventing impersonation of businesses.
- Facebook, Instagram, TikTok, X, and YouTube are listed as Category 1 services facing the strictest requirements.
The UK's communications regulator, Ofcom, has unveiled draft proposals mandating that major technology platforms take greater responsibility for tackling scam advertisements appearing on their services. These measures, stemming from the Online Safety Act, aim to protect consumers from fraudulent content that has become prevalent across platforms like YouTube, Instagram, and TikTok.
According to Ofcom, over half of UK adults have encountered potentially fraudulent ads online, with more than a third seeing them frequently. The proposed rules would require platforms to implement systems to prevent users from seeing such ads and to swiftly remove reported fraudulent content, minimizing its time online. Firms that fail to comply with these legal duties, once enacted, could face significant penalties, including fines equivalent to 10% of their global annual turnover or £18 million, whichever is greater.
Oliver Griffiths, Ofcom's online safety director, emphasized the need for tech giants to act more robustly against fraudsters using their platforms. The proposed measures include requirements for platforms to ban individuals and entities that post scams or impersonate legitimate businesses, and to prevent them from creating new accounts. Griffiths urged companies to begin making improvements immediately, warning of serious consequences for non-compliance.
Ofcom has also published its register of services categorized under the Online Safety Act, identifying platforms that will face additional transparency and accountability requirements. Category 1 services, deemed to have the most significant reach and impact, include Facebook, Instagram, Pinterest, Quora, Reddit, Roblox, Snapchat, TikTok, WhatsApp, X, and YouTube. The regulator is also monitoring services like iMessage, Messenger, Threads, and Wikipedia as potential emerging Category 1 services.
Consumer advocacy group Which? welcomed the proposals as a crucial step toward holding tech firms accountable. However, Rocio Concha, head of policy and advocacy at Which?, expressed concern over the projected timeline for implementation, suggesting it leaves consumers unprotected until at least 2027. Concha highlighted the increasing sophistication of scams due to AI advancements and urged Ofcom to expedite the rollout of its codes. Ofcom is currently consulting on the proposed measures, with feedback being accepted until October 2.