FTC seeks input on platform liability for impersonation scam ads

Techlicious

The FTC voted 2-0 to seek public input on whether social media, search engines and online marketplaces may violate its impersonation rule when their ad systems help scammers pose as businesses or government agencies, and what screening should be required.

The FTC says it received more than 1 million reports of impersonation scams in 2025, with consumers losing nearly $3.5 billion. Almost a third of victims said social media was their first point of contact; those cases accounted for $2.1 billion in losses.

The rule, in effect since April 2024, already lets the FTC seek civil penalties and consumer refunds in federal court when someone impersonates a business or government agency. Comments will be accepted through regulations.gov for 60 days after the notice is formally published in the Federal Register.

#FTC-scam-ad-liability #FTC-impersonation-rule-update
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