Senators Ruben Gallego (D-Ariz.) and Bernie Moreno (R-Ohio) joined forces on Wednesday to introduce the Safeguarding Consumers from Advertising Misconduct (SCAM) Act. This legislation aims to protect consumers from fraudulent and deceptive advertisements that are prevalent on online platforms, including social media companies.
The rise of online advertising has brought many benefits to businesses and consumers alike. However, it has also opened the door to a surge in fraudulent and deceptive advertisements that can harm unsuspecting consumers. According to the Federal Trade Commission (FTC), Americans reported losing over $3.3 billion to fraud in 2020, with a significant portion of these scams occurring online.
To address this growing issue, Sens. Gallego and Moreno have come together to propose the SCAM Act, which would require online platforms to take “reasonable steps” to prevent fraudulent or deceptive advertisements from reaching consumers. These steps would include establishing and enforcing policies to identify and remove scam advertisements, as well as providing consumers with a way to report such ads.
In a statement, Sen. Gallego emphasized the need for this legislation, saying, “As technology continues to evolve, so do the tactics of scammers. We need to ensure that our laws keep up with these changes and protect consumers from falling victim to online scams.”
The SCAM Act would also place the responsibility on online platforms to verify the identity of advertisers and ensure that the products or services being advertised are legitimate. This would help prevent scammers from hiding behind fake identities or promoting fake products.
Senator Moreno echoed the sentiment, stating, “Online platforms have a responsibility to ensure that the advertisements they host are not misleading or fraudulent. Our bipartisan legislation will hold these platforms accountable and provide consumers with the protection they deserve.”
The legislation has received support from both sides of the aisle, with lawmakers recognizing the importance of protecting consumers in the digital age. The bill has also gained support from consumer advocacy groups, including the National Consumers League and Consumer Reports.
The SCAM Act has provisions that specifically target social media companies, as these platforms have become hotspots for scam advertisements. According to the FTC, Facebook and Instagram users reported losing over $117 million to scams in the first six months of 2020 alone.
Senator Gallego further explained the need to hold social media companies accountable, stating, “Social media has become a breeding ground for scammers, and it’s time for these platforms to take action. The SCAM Act will ensure that these companies are doing their part to protect consumers and prevent deceptive advertisements from reaching their users.”
The SCAM Act also includes provisions to educate consumers and increase awareness about online scams. This would involve creating a public education campaign to inform consumers about common scams and how to spot them, as well as providing resources for reporting and recovering from fraudulent activities.
The Senate bill has been referred to the Committee on Commerce, Science, and Transportation, where it will undergo further review and potential amendments before being brought to a vote. However, the introduction of this legislation has already sparked conversations and brought attention to the issue of online scam advertisements.
In conclusion, the SCAM Act is a bipartisan effort to protect consumers from falling victim to online scams. It aims to hold online platforms accountable for the advertisements they host and educate consumers about the dangers of fraudulent and deceptive ads. As technology continues to advance, it is crucial to have laws in place that keep pace with these changes and safeguard the interests of consumers. Let us hope that the SCAM Act will be passed and become an essential tool in the fight against online scams.
