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Ofcom has introduced new draft regulations aimed at compelling major online platforms such as YouTube, Instagram, and TikTok to address the issue of scam advertisements appearing on their services. These proposals form part of a broader effort to shield users from fraudulent online adverts by increasing the responsibilities placed on certain digital platforms under the Online Safety Act (OSA). According to Ofcom, more than half of adults in the UK have encountered ads that could be scams, with over a third seeing such content frequently.
The proposed rules outline significant penalties for platforms that fail to comply, including fines reaching up to £18 million or 10% of a company’s global revenue, whichever sum is higher. Oliver Griffiths, Ofcom’s online safety director, emphasized the need for urgent and effective action, stating, “For too long, victims have been exposed to scam ads online with tech giants simply not doing enough to combat the fraudsters using their platforms.” He added that firms must take “robust action to stamp out scam ads and boot out the bad actors behind them to safeguard their users.”
These draft measures focus specifically on misleading content that promotes products or services through deception or trickery. Ofcom proposes requirements for platforms to ban users who disseminate scams, prevent these individuals from creating new accounts, and act against those impersonating legitimate businesses. Griffiths urged platforms to begin implementing improvements immediately, warning that after the legal duties come into effect, “sites and apps that fail to meet their legal duties… can expect to face serious consequences.”
The rise of paid, deceptive adverts designed to extract money from consumers online has become an everyday problem. For instance, the UK’s advertising authority recently criticized certain portable air conditioning unit adverts on Facebook and YouTube as making claims that were “too good to be true.” Additionally, in early June, there were complaints about adverts on X featuring fake AI-generated images of public figures such as Nigel Farage and Andrew Bailey. Although Ofcom has faced pressure to tackle these issues, some of its regulatory powers hinge on classifications of online services under the OSA that have yet to be fully enforced. Platforms designated as Category 1, 2A, or 2B must implement systems to prevent users from encountering scam adverts and ensure rapid removal of such content, minimizing its presence on their sites.
Ofcom has published its official register of categorised services, identifying major platforms that should face the strictest obligations due to their scale and influence. This list includes Facebook, Instagram, Pinterest, Quora, Reddit, Roblox, Snapchat, TikTok, WhatsApp, X, and YouTube. The regulator is also keeping an eye on other services like Apple’s iMessage, Meta’s Messenger and Threads, and Wikipedia as possible “emerging Category 1 services,” indicating they may soon be subject to similar scrutiny
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