Ofcom pressures digital platforms to combat fraudulent ads
The biggest digital platforms, including names like YouTube, Instagram and TikTok, are expected to step up their efforts to control fraudulent ads. The requirement comes from new proposals presented by Ofcom, the UK telecommunications regulatory body, aimed at more effectively protecting users against online scams.
Recently, the entity released a set of detailed measures that large technology companies are expected to implement. The aim is to shield the public against the growing wave of misleading advertising, as stipulated by the Online Safety Act (OSA).
A survey carried out by Ofcom revealed that more than half of British adults have come across potentially misleading advertisements on the internet. Worryingly, more than a third of those interviewed said they frequently encounter this type of content in their daily interactions on the network.
If the proposals become law and are not followed, companies could face significant financial penalties. Fines can reach 18 million pounds sterling or 10% of the company’s global revenue, whichever is higher.
“For too long, victims have been exposed to fraudulent adverts online, and tech giants simply aren’t doing enough to tackle the fraudsters using their platforms,” said Oliver Griffiths, director of online safety at Ofcom.
Ofcom’s guidelines target content that promotes products or services in a way that confuses or misleads the viewer. The focus is to ensure that companies act proactively against those who try to deceive consumers.
The regulatory document details that technology companies must not only ban scammers from their platforms, but also prevent them from creating new accounts, curbing the practice of posing as legitimate entities to carry out scams.
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“Platforms shouldn’t dawdle – they can start making improvements for their users right now,” Griffiths highlighted. He further warned that “websites and apps that fail to comply with their legal obligations, once in place, can expect serious consequences.”
Details about the services that will be categorized
False paid advertising, which aims to manipulate people into spending money, has become a common phenomenon in everyday digital life. This type of fraud, often sophisticated, requires a robust regulatory response to protect the public.
Last Friday, the UK’s advertising regulator issued a warning about adverts for portable air conditioning units circulating on Facebook and YouTube, the claims of which were deemed “too good to be true”.
In early June, similar concerns arose regarding advertisements running on Platform
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Although Ofcom has received calls to intervene in cases like these, part of its ability to act is linked to regulations for categorized services that have not yet been fully implemented.
Digital platforms are subject to additional transparency and accountability requirements if they are classified in categories 1, 2A and 2B under the Online Safety Act (OSA). This categorization defines the level of responsibility for each service.
Services that fall into these categories must have robust systems in place to prevent users from encountering fraudulent advertisements. Additionally, they need to quickly remove any reported content and minimize the time illegal material spends on their platforms.
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Ofcom has just released its list of categorized services. The list includes Category 1 platforms, which the agency considers must meet the most stringent requirements, especially in combating fraudulent advertisements, due to their vast reach and popularity.
Among the categorized platforms are Facebook, Instagram, Pinterest, Quora, Reddit, Roblox, Snapchat, TikTok, WhatsApp, X and YouTube. These companies will face increased regulatory scrutiny and liability.
Ofcom also said it is closely monitoring other services such as Apple’s iMessage, Meta’s Messenger and Threads, and Wikipedia, assessing their potential to be classified as “Category 1 emerging services” in the future.
The consultation process on the Online Security Law
Ofcom has opened a public consultation to gather industry and public views on the proposed measures, with the deadline for contributions set at 2 October. This process seeks to ensure that regulations are comprehensive and effective.
Rocio Concha, head of policy and advocacy at the organization Which?, called the publication of the proposals a “significant step” toward holding accountable technology companies that profit from fraud that harms their users.
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However, Concha expressed concern that the regulatory body’s timeline “leaves consumers unprotected until at least 2027”, a period considered too long given the technological evolution of scams.
“This is very problematic at a time when dizzying advances in AI are making scams more sophisticated than ever before,” Concha added, calling for Ofcom to implement its codes of conduct as quickly as possible to protect users.
