Ofcom Proposes New Rules for Tech Companies to Combat Fraudulent Online Ads

Ofcom, the UK communications regulator, has put forward proposals that would mandate major technology companies to tackle fraudulent advertising on their platforms. The regulator stated that over half of adults in the United Kingdom have encountered advertising online that they consider potentially fraudulent.

The proposed rules would integrate scam ads into existing online safety regulations. These regulations currently hold platforms accountable for illegal content such as child sexual abuse material and terrorist content.

Ofcom officials indicated that the inclusion of fraudulent advertisements would extend these responsibilities to cover a wider array of harmful content. The regulator's data shows that 52% of UK adults reported seeing or being exposed to potentially fraudulent ads online in the past 12 months. This percentage rises to 66% for individuals aged 18-34 years old.

According to the proposals, tech companies would need to implement measures to prevent fraudulent advertising. This includes stopping such ads from appearing, promoting, or being shared on their services. The companies would also need to address cases where users report seeing these ads. Ofcom stated that this would require platforms to implement robust systems for reporting and removing scam content.

Dame Melanie Dawes, Ofcom's Chief Executive, stated, "Holding tech firms to account for illegal content on their sites is an important part of our job." She added, "Today, we're proposing to include scam ads in that work too." Dawes emphasized that online adults frequently encounter fraudulent advertising, outlining the potential for significant scam-related harm.

An Ofcom spokesperson clarified that the proposals target advertisements where criminals present fraudulent investment schemes or fake product sales. This would apply to ads appearing on search engines, social media feeds, and video-sharing platforms. The new responsibilities would include advertisements that offer products or services that genuinely do not exist or are designed to defraud users of money or personal information.

Ofcom is inviting feedback on its proposals through a consultation period that ends July 16. The regulator plans to publish its final decision by Spring 2025. Parliament will then review the final codes of practice.