Congress·In Committee·H.R. 7548

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

SCAM Act

about 1 month ago·View on Congress.gov

Part of: Congress Introduces SCAM Act to Hold Platforms Liable for Fraudulent Ads

Legislative Progress

House

Senate

President

Law

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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Impact Analysis

Personal Impact

Who is affectedScoreImpactCertaintyScopeDurationSentiment

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

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·about 1 month 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.

Biometric Update·about 2 months 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.

Related Bills

1 bill

S. 3774Identical bill

SCAM Act

Feb 4 — Read twice and referred to the Committee on Commerce, Science, and Transportation.

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

Data Sources

Congress.gov

Official legislative information

Analysis generated by AI. Always verify with official sources.