Big tech must deal with scam ads under Ofcom proposals

Ofcom has published draft measures requiring tech platforms like YouTube, Instagram, and TikTok to take action against fraudulent advertisements. The regulator states that over half of UK adults have encountered potentially fraudulent ads online, with more than a third seeing them frequently. Under the proposed rules, which are part of the Online Safety Act (OSA), firms that fail to comply could face fines of up to £18 million or 10% of global turnover. Ofcom's proposals target misleading paid-for content and would mandate that platforms ban users who post scams, prevent them from creating new accounts, and stop impersonation of real businesses. The regulator has also published a register of categorised services, including Facebook, Instagram, TikTok, X, and YouTube, which will face the toughest additional requirements. Ofcom is seeking public and industry feedback on the measures until October 2, with enforcement not expected until 2027 at the earliest, according to consumer group Which?.