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Congress Moves to Hold Social Media Platforms Liable for Scam Ads 

By  |  February 19, 2026

Perhaps the fastest way to get scammed online can start with something that feels normal: a paid ad in your feed. It promises a giveaway, a bargain or a quick fix. One click later, the “seller” is gone. And so is your money.

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    That is the backdrop for a new bipartisan bill in Congress. Financial Regulation News reports that Reps. Dan Meuser (R-PA) and Lou Correa (D-CA) have introduced legislation aimed at predatory online scam advertisements. The report says large online platforms have become a primary channel for these schemes.

    The scams come in many forms. Financial Regulation News lists examples of fake giveaways, fraudulent animal sales and ads for products that do not exist. It also points to government-impersonation pitches, romance and health scams, plus more advanced impersonations that use AI-cloned voices and stolen images. The report adds that the Federal Trade Commission has estimated fraud losses in 2024 at $195.9 billion.

    Meuser says platforms should not be able to cash the check and look away. “Scammers should not be able to buy their way onto trusted online platforms and prey on vulnerable users,” he said.

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    The proposal is called the Safeguarding Consumers from Advertising Misconduct (SCAM) Act. In simple terms, it would require platforms to take “reasonable steps” to prevent fraudulent and deceptive ads, tighten accountability when scams slip through, and strengthen enforcement by the FTC and state authorities.

    Read more: UK Considers Australian-Style Social Media Ban for Under-16s; Moves to Tighten AI Safety Laws

    The bill would push platforms to do four things:
    • Stop paid scam ads by holding platforms accountable when they profit from deceptive advertising and fail to stop it.
    • Verify who is buying ads, including ID checks, safeguards against impersonation and clear tools for users to report scams.
    • Move faster when people report scams, with strict timelines to investigate and remove fraudulent ads.
    • Give the FTC, states and harmed consumers clearer ways to enforce the rules.

    Correa framed the issue as a Main Street problem, not a niche tech fight. He said “millions” of Americans are falling victim to social media ad scams and that companies making money from ads have a responsibility to make sure those ads are not fraudulent.

    The effort is already moving on two tracks. The report says Senators Ruben Gallego (D-AZ) and Bernie Moreno (R-OH) introduced a companion bill in the Senate. It has also drawn support from groups that see scam ads feeding real financial losses, including the American Bankers Association and AARP.

    The platform angle also matches what PYMNTS Intelligence has been reporting. A PYMNTS Intelligence report with Featurespace found that three in 10 U.S. consumers — roughly 77 million people — said they lost money to scams in the last five years, and it highlighted social media as a key starting point for Gen Z scams.

    What happens next will come down to the details. Committees will have to define what “reasonable steps” look like in practice such as how strict advertiser checks should be, how quickly platforms must act after a user report, and how to keep up as scams evolve. If the SCAM Act gains traction, it would put fresh pressure on the biggest platforms to treat ad screening as a basic safety duty, not an afterthought.