WASHINGTON – Senators Ruben Gallego (D-AZ) and Bernie Moreno (R-OH) announced growing support for the bipartisan Safeguarding Consumers from Advertising Misconduct (SCAM) Act, which would require online platforms to take reasonable steps to prevent fraudulent and deceptive ads and strengthen accountability when scams slip through.
This week, Representatives Lou Correa (D-CA-46) and Dan Meuser (R-PA-09) introduced companion legislation in the House of Representatives.
“Online scam ads are costing hardworking Americans billions of dollars every year, and we can’t let platforms profit while families pay the price,” said Senator Gallego. “I’m proud to see our colleagues in the House stepping up to support efforts to crack down on this growing problem. This bipartisan bill will hold companies accountable and strengthen protections for consumers across the country.”
“It is critical that we protect American consumers from deceptive ads and shameless fraudsters who make millions taking advantage of legal loopholes,” said Senator Bernie Moreno. “We can’t sit by while social media companies have business models that knowingly enable scams that target the American people.”
The SCAM Act is endorsed by the AARP, Bank Policy Institute, National Consumers League, Consumer Bankers Association, American Bankers Association, Consumers Federation, and Alliance for Retired Americans. Since its release last week, the bill has received additional letters of support from several of these organizations:
“AARP thanks you for your leadership in crafting the Safeguarding Consumers from Advertising Misconduct Act, and we urge Congress to pass this important legislation into law,” said AARP Senior Vice President Government Affairs Bill Sweeney in a letter of support.
“We enthusiastically commend this effort to fight fraud and protect consumers. For too long, the social media scam ecosystem has been generating profits for social media platforms. Under the SCAM Act, a greater volume of scams will no longer mean greater revenue,” said ABA President and CEO Rob Nichols in a letter of support. “ABA is proud to endorse S.3774 and strongly encourages all members of the United States Senate to support this critical, commonsense measure to protect the American people. Thank you again for your leadership on this important issue that touches consumers and businesses across the country.”
“Older Americans lost $4.8 billion to internet scams in 2024, with social media the leading gateway for fraud. Older adults are disproportionately targeted by deceptive online ads, and corporations that profit from them must be held accountable,” said Richard Fiesta, Executive Director of the Alliance for Retired Americans. “Requiring digital platforms to proactively combat fraud is a critical step toward protecting Americans online. The Alliance strongly supports the SCAM Act and applauds Senators Gallego and Moreno for introducing this bipartisan effort to crack down on scam advertising.”
Additionally, after the bill’s release, the Bank Policy Institute released a Fraud and Scam Prevention Playbook and Interactive Media Hub, and the National Consumers League and 13 other public interest groups urged big tech companies to implement new policies to combat scam ads on their platforms.