The Safeguarding Consumers from Advertising Misconduct Act (H.R. 7548) would prohibit online platforms like social media sites from displaying fraudulent or deceptive paid advertisements if they fail to take reasonable steps to prevent such ads. The bill requires platforms to verify advertiser identities using government-issued identification, implement fraud detection systems, and respond to reports of suspicious ads within 72 hours—removing confirmed fraudulent ads within 24 hours. The Federal Trade Commission must write detailed regulations within one year to enforce the law, which also allows state attorneys general and consumers who suffer losses to sue platforms directly for violations. The bill notably limits tech platforms' immunity under Section 230 of the Communications Act for paid advertisements, responding to Federal Trade Commission data showing Americans lost nearly $196 billion to fraud in 2024, with social media platforms being the primary contact method for scammers targeting younger consumers.
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