SCAM Act

This bill would make it illegal for an online platform to show a paid advertisement that is fraudulent or deceptive if the platform did not take reasonable steps to prevent it. Platforms that sell ads would have to verify each advertiser's identity, run systems to detect scam ads and impersonation, and give users a tool to report suspected scam ads. Platforms would have to investigate reported ads within 72 hours and remove ads found to violate the law within 24 hours. The Federal Trade Commission, state attorneys general, and injured individuals could bring legal action, and Section 230(c)(1) liability protection would not apply to violations. The FTC would also report to Congress on whether more authority is needed to address online scams involving financial transactions.

Full text and official record on Congress.gov

Sponsors

• Daniel Meuser Republican sponsor
• 57 cosponsors