WASHINGTON – Today, Senators Bernie Moreno (R-Ohio) and Ruben Gallego (D-Ariz.) introduced the Safeguarding Consumers from Advertising Misconduct (SCAM) Act to crack down on predatory online scam advertisements that cost Americans billions every year.
“It is critical that we protect American consumers from deceptive ads and shameless fraudsters who make millions taking advantage of legal loopholes,” said Senator Moreno. “We can’t sit by while social media companies have business models that knowingly enable scams that target the American people.”
“Scammers are using social media to swindle Americans out of their hard-earned savings, and right now, those platforms face almost no consequences for letting it happen,” said Senator Gallego. “If a company is making money from running ads on their site, it has a responsibility to make sure those ads aren’t fraudulent. This bipartisan bill will hold social media companies accountable and protect consumers money online.”
“OBL applauds Sens. Gallego and Moreno for leading bipartisan legislation to combat fraud. Each year, millions of Americans—including countless Ohioans—fall victim to scams that often start on social media. The Safeguarding Consumers from Advertising Misconduct (SCAM) Act would bring social media companies into the fight to stop predatory activities before people are victimized,” said Michael Adelman, President and CEO of Ohio Bankers Association. “Bankers work relentlessly to detect and nip fraud as well as educate customers, yet people fall prey to insidious cons that wipe out their lifesavings. Every day, bankers see the devastation caused by romance scams, impersonation schemes, and fake giveaways. This bipartisan effort highlights the urgent need to curb a growing fraud crisis ruining lives across the country.”
“Tech platforms have massive reach and it’s their responsibility to prevent the misuse of their services for scamming consumers,” said National Consumers League Vice President of Public Policy, Telecommunications, and Fraud John Breyault. “This bill would make clear that these giants must do more to protect the public.”
“ABA applauds Sens. Gallego and Moreno for their leadership in introducing the Safeguarding Consumers from Advertising Misconduct (SCAM) Act, a critical step forward in the nation’s fight against fraud. Millions of Americans lose billions of dollars a year to scams that start on social media platforms. Banks of all sizes invest significant resources to detect and stop fraud, and Americans appreciate those efforts, but we need to prevent scams before they ever reach a bank. The SCAM Act simply asks social media companies to put consumers first by taking responsible steps to remove scammers from their platforms. Protecting Americans from fraud should be a bipartisan, national priority, and ABA encourages all lawmakers to join Sens. Gallego and Moreno in supporting the SCAM Act and sticking it to the scammers,” said ABA President and CEO Rob Nichols.
The SCAM Act requires online platforms to take reasonable steps to prevent fraudulent and deceptive ads and strengthen accountability when scams occur. The bill will strengthen the Federal Trade Commission’s and states’ ability to enforce violations of consumer protection laws.
Read the full bill text HERE.