Major platforms like YouTube, Instagram, and TikTok are under pressure to combat fraudulent advertising due to new proposals from Ofcom.
The regulatory body has outlined essential measures for big tech firms to enhance online safety and protect users from deceptive advertising practices. The proposed regulations will increase accountability for services under the Online Safety Act (OSA).
Research indicates that over 50% of adults in the UK have encountered online ads that seem fraudulent, with more than a third facing such ads frequently.
If the legislation is enacted, non-compliant companies could incur fines reaching up to £18 million or 10% of their worldwide revenue, whichever amount is higher.
Oliver Griffiths, Ofcom’s online safety director, stated, “For too long, victims have been vulnerable to fraudulent online advertising, and tech giants must do more to fight against scammers exploiting their platforms.”
“We anticipate robust action from companies to eliminate fraudulent ads and eradicate the malicious actors behind them, ensuring user protection.”
Ofcom’s recommendations specifically address content that unfairly promotes goods or services, misleading viewers.
This includes mandates for tech companies to ban users posting scams or impersonating legitimate businesses, along with preventing them from creating new accounts.
“Platforms should not hesitate. They have the capacity to implement improvements for user safety immediately,” Griffiths emphasized.
“When these legal requirements come into effect, platforms and apps will face significant repercussions for failing to meet their obligations.”
Source: www.bbc.co.uk