FTC orders Big Tech to address surge in ads promoting scams and fraudulent products
Christopher Hutton
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The Federal Trade Commission ordered some of the biggest social media and streaming companies to provide them with information on how scammers and fraudsters use their platforms to sell and trade deceptive goods.
The agency on Thursday issued orders to Facebook, Instagram, TikTok, Youtube, Snap, Twitter, Pinterest, and Twitch to provide information about their standards related to ad screening and monitoring. The companies were also told to give information on ad revenue about categories, such as healthcare and fraud, more prone to fraudulent behavior.
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“Social media has been a gold mine for scammers who tout sham products and other scams that have cost consumers enormously in recent years,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, in a statement. “This study will help the FTC ensure that social media and video streaming companies are doing everything they can to keep scammers and deceptive ads off their platforms.”
Fraud reports have been on the decline. The Consumer Sentinel Network received 2.4 million fraud reports in 2022, a reduction compared to 2021’s 2.9 million reports.
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The FTC has been particularly interested in Big Tech companies in the last term. The agency has pressed Twitter to probe whether it is complying with a May 2022 consent order and attempted to block Meta’s acquisition of a virtual reality developer — a suit that was shot down by a judge in February.