Senators Bernie Moreno (R-Ohio) and Ruben Gallego (D-Ariz.) have introduced the Safeguarding Consumers from Advertising Misconduct (SCAM) Act, aimed at addressing fraudulent online advertisements that result in significant financial losses for Americans each year.
“It is critical that we protect American consumers from deceptive ads and shameless fraudsters who make millions taking advantage of legal loopholes,” said Senator Moreno. “We can’t sit by while social media companies have business models that knowingly enable scams that target the American people.”
Senator Gallego added, “Scammers are using social media to swindle Americans out of their hard-earned savings, and right now, those platforms face almost no consequences for letting it happen. If a company is making money from running ads on their site, it has a responsibility to make sure those ads aren’t fraudulent. This bipartisan bill will hold social media companies accountable and protect consumers money online.”
Michael Adelman, President and CEO of the Ohio Bankers Association, expressed support for the bill: “OBL applauds Sens. Gallego and Moreno for leading bipartisan legislation to combat fraud. Each year, millions of Americans—including countless Ohioans—fall victim to scams that often start on social media. The Safeguarding Consumers from Advertising Misconduct (SCAM) Act would bring social media companies into the fight to stop predatory activities before people are victimized. Bankers work relentlessly to detect and nip fraud as well as educate customers, yet people fall prey to insidious cons that wipe out their lifesavings. Every day, bankers see the devastation caused by romance scams, impersonation schemes, and fake giveaways. This bipartisan effort highlights the urgent need to curb a growing fraud crisis ruining lives across the country.”
John Breyault of the National Consumers League stated: “Tech platforms have massive reach and it’s their responsibility to prevent the misuse of their services for scamming consumers. This bill would make clear that these giants must do more to protect the public.”
Rob Nichols, President and CEO of the American Bankers Association (ABA), also commented: “ABA applauds Sens. Gallego and Moreno for their leadership in introducing the Safeguarding Consumers from Advertising Misconduct (SCAM) Act, a critical step forward in the nation’s fight against fraud. Millions of Americans lose billions of dollars a year to scams that start on social media platforms. Banks of all sizes invest significant resources to detect and stop fraud, and Americans appreciate those efforts, but we need to prevent scams before they ever reach a bank. The SCAM Act simply asks social media companies to put consumers first by taking responsible steps to remove scammers from their platforms. Protecting Americans from fraud should be a bipartisan, national priority, and ABA encourages all lawmakers to join Sens. Gallego and Moreno in supporting the SCAM Act and sticking it to the scammers.”
The proposed legislation would require online platforms to take steps designed to prevent fraudulent advertisements as well as strengthen accountability when scams occur. Additionally, it would enhance enforcement abilities for both federal agencies such as the Federal Trade Commission (FTC) and state authorities.
