The FTC is asking who profits from scam ads.
Scammers buy the same ad tools real businesses use. Now the FTC wants to know if the platforms selling those tools should share the blame.
What happened
On September 24, the Federal Trade Commission put out what's called an advance notice of proposed rulemaking. In plain words, it's an early step where the agency asks the public for input before it writes a rule.
The question is whether to update the FTC's rule against impersonating the government or real businesses. Specifically, it wants to know if social media sites, search engines, and online marketplaces help scammers when they sell ad targeting and ad optimization tools.
The FTC says people reported nearly $3.5 billion in losses to impersonation fraud last year, and it thinks the real number is probably higher. The current rule, adopted in 2024, bans pretending to be a government agency or business. It doesn't directly cover the platforms whose tools can boost those scams.
Comments are due 60 days after the notice appears in the Federal Register.
What it means for you
Nothing changes today. This is the very start of the process, and the FTC hasn't proposed any specific rule yet.
It does confirm something you should keep in mind every time you search online. That top result might be a paid ad, and it might be a fake. In a September 28 alert, the FTC warned that scammers and shady businesses sometimes pay to show up first in search results.
What to do
- Scroll past the ads. Use the regular search results to find the real website or phone number for a company or agency.
- Watch how they want to be paid. If someone says you can only pay by wire transfer, gift card, crypto, or a payment app, walk away. That money is very hard to get back.
- Look it up first. Search the company's name plus "scam" or "complaint" before you hand over money or personal info.
- Report it. If you spot a fake, tell the FTC at ReportFraud.ftc.gov. Investigators use those reports to build cases.
Think you can spot a fake? Try the scam-proof quiz at credora.co.
Sources
- FTC Seeks Public Comment on Whether to Update Rule on Impersonation of Government and Businesses
- Rule on Impersonation of Government and Businesses (ANPRM)
- FTC Consumer Advice: What to know ahead of Open Enrollment to avoid health insurance scams
- FTC Seeks Comment on Proposed Rule to Crack Down on Platform Facilitation of Impersonation Scam Ads
This post is general information, not legal advice. Credora is not a law firm. Results vary and are not guaranteed.
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