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Congress·In Committee·18 days ago

House Committee Targets Online Scams With New Rules Requiring Ad Verification and 72-Hour Takedowns

Also known as: SCAM Act

Legislative Progress

✓ Filed
Review
House
Senate
President

Impact Analysis

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Key Points

  • This bill requires social media sites and other online platforms to verify the identity of anyone who pays to run an advertisement. Platforms would have to check the advertiser's legal name, physical location, and government-issued ID to prevent scammers from using fake or stolen identities.
  • Platforms must create systems to automatically and manually find deceptive ads, including those using AI-cloned voices or stolen images. They are also required to provide a simple tool for users to report suspicious ads they see while browsing.
  • If a scam is reported, the platform must investigate it within 72 hours. If they find the ad is fraudulent, they must remove it within 24 hours. This aims to stop common scams like fake giveaways, romance fraud, and health scams before they reach more victims.
  • The bill changes a long-standing law that usually protects websites from being sued over what users post. Under these new rules, platforms can be held legally responsible if they take money for an ad they failed to properly screen for fraud.
  • The Federal Trade Commission and state officials would have the power to fine companies that do not follow these rules. Additionally, people who lose money to these scams would have the right to sue the platforms for their financial losses plus legal fees.
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Milestones

2 milestones2 actions
Feb 12, 2026House

Referred to the House Committee on Energy and Commerce.

Feb 12, 2026

Introduced in House

Related News

2 articles
PYMNTS·11 days ago

Congress Moves to Hold Social Media Platforms Liable for Scam Ads

Reps. Dan Meuser and Lou Correa introduced the House version of the SCAM Act, which holds platforms liable for profiting from fraudulent ads. The bill requires 'reasonable steps' for verification, including government IDs, and sets strict 72-hour investigation timelines for reported scams.

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Biometric Update·25 days ago

Bipartisan bill to tackle social media scam ads introduced in US Senate

The Safeguarding Consumers from Advertising Misconduct Act (SCAM Act) mandates that online services verify advertiser identities using government-issued IDs. It aims to close legal loopholes that allow platforms to profit from scams without facing consequences.

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Source Information

Document Type

Congressional Bill

Official Title

SCAM Act

Bill NumberHR 7548
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Energy and Commerce.

Sponsor

Cosponsors

(1)
D: 1

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.