SCAM Act

The SCAM Act requires online platforms that accept payment for advertisements to verify advertiser identities (including government ID and business documentation) and implement systems to detect and remove scam ads within 72 hours of reporting. It mandates platforms to conduct investigations, remove verified fraudulent ads within 24 hours, and maintain active impersonation detection programs. The law directly affects major social media and digital advertising platforms by imposing new verification and monitoring obligations to prevent deceptive ads targeting consumers. Enforcement falls to the Federal Trade Commission, treating violations as unfair or deceptive practices under existing law.