Several social media companies, including Meta, TikTok, YouTube, Twitter, Snapchat, Pinterest and Twitch, have been told by the FTC that they must reveal how they prevent fake ads.
Fake Ads On Social Media
The Federal Trade Commission (FTC) has issued orders to eight social media and video streaming platforms in an effort to learn more about how these companies deal with advertising fraud.
Since 2017, reports of victims incurring losses from online scams launched via social media have increased dramatically. As per FTC statistics, social media was the primary source for alleged losses of over $1.2 billion caused by fraud in 2022 alone.
Samuel Levine, Director of the FTC’s Bureau of Consumer Protection said about how social media companies are dealing with this issue: “Social media has been a gold mine for scammers who tout sham products and other scams that have cost consumers enormously in recent years. This study will help the FTC ensure that social media and video streaming companies are doing everything they can to keep scammers and deceptive ads off their platforms.”.