SCAM Act

This bill would make it illegal for an online platform, such as a social media service, to display a paid ad 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 break the law within 24 hours. The Federal Trade Commission and state attorneys general could enforce the law, injured people could sue, and a federal liability shield (Section 230(c)(1)) would not apply to violations.

Full text and official record on Congress.gov

Sponsors

• Ruben Gallego Democrat sponsor
• 8 cosponsors