Text of Legislation (PDF)

Representatives Lou Correa (D-CA) and Dan Meuser (R-PA) have united to introduce the Safeguarding Consumers from Advertising Misconduct (SCAM) Act, legislation designed to combat the rampant issue of predatory online scam advertisements. The bill was introduced on February 12, 2026, and has gained bipartisan support, including a Senate counterpart backed by Senators Ruben Gallego (D-AZ) and Bernie Moreno (R-OH).

As online platforms increasingly serve as primary outlets for scams and fraudulent advertising, concerns continue to escalate. The Federal Trade Authority has reported staggering fraud losses in 2024, estimated at approximately $195.9 billion, with $81.5 billion lost among older adults alone. Scams range from fake giveaways and animal sales to sophisticated schemes involving AI-cloned voices and fraudulent impersonations.

“Every day, millions of hardworking American taxpayers on Main Street are falling victim to social media ad scams that are cheating them out of their hard-earned money,” Correa stated. He emphasized the responsibility that social media companies have to protect consumers and ensure that fraudulent ads do not fill their platforms.

The SCAM Act would impose stricter regulations on online advertising, requiring platforms to take reasonable measures to prevent fraudulent ads, thereby enhancing accountability when scams do occur. It aims to empower the Federal Trade Commission (FTC) and state authorities to enforce consumer protection laws more effectively.

As Subcommittee Chairman of Oversight and Investigations, Meuser noted the alarming trend of financial fraud, revealing that nearly $200 billion is lost to scams each year, with social media platforms being a significant source. “Scammers should not be able to buy their way onto trusted online platforms and prey on vulnerable users,” Meuser asserted.

Despite some social media companies investing in fraud detection tools, the problem persists, as criminals continue to exploit these platforms to target unsuspecting users.

Key provisions of the SCAM Act include:

– A ban on paid scam ads, making online platforms financially accountable for failing to remove fraudulent advertisements.
– Requirements for real advertiser verification and enhanced fraud detection measures.
– Obligations for rapid response to reported scams, including strict timelines for investigating and removing fraudulent ads.
– Expanded enforcement capabilities for the FTC, states, and affected consumers.

Senator Bernie Moreno highlighted the urgency of protecting Americans from deceptive advertising practices, stating, “We can’t sit by while social media companies have business models that knowingly enable scams targeting the American people.” Senator Ruben Gallego echoed this sentiment, adding, “Online scam ads are costing hardworking Americans billions of dollars every year.”

The SCAM Act has garnered support from various industry leaders and consumer advocacy groups. Rob Nichols, President and CEO of the American Bankers Association, praised the bill’s potential to protect Americans from fraud, emphasizing the need for social media companies to prevent the spread of deceptive ads.

Additionally, AARP has expressed its endorsement, with Senior Vice President Bill Sweeney noting that the increasing sophistication of online scams particularly targets older adults. The organization believes the SCAM Act’s protective measures will help mitigate the rising tide of fraud.

As the legislative process unfolds, advocates hope that the SCAM Act will bring meaningful change in the fight against online scams, providing necessary protections for consumers across the country.

Read the full bill text HERE.