United States of America: Safeguarding Consumers from Advertising Misconduct Act (SCAM Act) was introduced to Senate

On 4 February 2026, the Safeguarding Consumers from Advertising Misconduct Act (SCAM Act) was introduced to the Senate. The Bill would prohibit online platforms from displaying fraudulent or deceptive commercial advertisements if they had accepted payment to display them and failed to take reasonable steps to prevent this. It would also require platforms that accept compensation for advertisements to implement verification procedures for advertisers, including verification of their legal name and physical location, government identification or business documentation, and contact information. Anti-circumvention measures would be required to prevent false, stolen, or synthetic identities, as well as impersonation and fraud detection systems, and a user reporting tool. Where a report is submitted, or the platform’s detection systems identify a potentially fraudulent or deceptive advertisement, the Bill would require the platform to investigate within 72 hours. If the platform determines that the advertisement violates the Act, it would be required to remove the advertisement within 24 hours of making that determination and notify the person who submitted the report, where applicable. The Bill directs the Federal Trade Commission to issue implementing regulations within one year of its enactment and authorises enforcement by state attorneys general and private plaintiffs. The Bill would also stipulate that the immunity in section 230(c)(1) of the Communications Act of 1934 would not apply to violations, while preserving section 230(c)(2).