Online safety bill includes legal duty on scam advertisements

The Government has announced changes to the Online Safety Bill to tackle scams and fraud.

The measures mean that social media sites and search engines will be forced to stamp out fraudsters and scammers on their platforms as the government strengthens its pioneering internet safety laws.

The move comes as the government also launches a consultation as part of a wider overhaul of how online advertising is regulated in the UK, including proposals to improve transparency and accountability and tackle harmful, fraudulent and misleading adverts.

Together the measures aim to boost people’s trust and confidence in being online by making sure the UK’s rules and regulations keep pace with rapid advances in technology.

A new legal duty will be added to the Online Safety Bill requiring the largest and most popular social media platforms and search engines to prevent paid-for fraudulent adverts appearing on their services.

The change will improve protections for internet users from the potentially devastating impact of fake ads, including where criminals impersonate celebrities or companies to steal people’s personal data, peddle dodgy financial investments or break into bank accounts.

Separately, the government is launching a consultation on proposals to tighten the rules for the online advertising industry. This would bring more of the major players involved under regulation and create a more transparent, accountable and safer ad market.

Harmful or misleading adverts, such as those promoting negative body images, and adverts for illegal activities such as weapons sales, could be subject to tougher rules and sanctions. Influencers failing to declare they are being paid to promote products on social media could also be subject to stronger penalties.

Culture Secretary Nadine Dorries said “We want to protect people from online scams and have heard the calls to strengthen our new internet safety laws. These changes to the upcoming Online Safety bill will help stop fraudsters conning people out of their hard-earned cash using fake online adverts.”

“As technology revolutionises more and more of our lives the law must keep up. Today we are also announcing a review of the wider rules around online advertising to make sure industry practices are accountable, transparent and ethical – so people can trust what they see advertised and know fact from fiction.”

Security Minister Damian Hinds said “Crimes like romance and investment fraud leave lifelong scars on their victims and can completely destroy their finances and ability to trust. Organised crime groups have discovered new ways to take full advantage of people, using increasingly sophisticated methods which would trick even the most scrupulous of individuals.”

“We know that these crimes are on the rise and with all of us spending longer online, criminals are spotting their opportunities to abuse people’s trust and trick them more and more.”

“The changes that we are announcing today mean that online and social media companies will have to acknowledge these issues and take robust action to combat the scourge of online fraud, and take more responsibility to protect their users from this high-harm crime. Innocent victims must not be taken advantage of and conned online by fraudsters.”

Martin Lewis, founder of MoneySavingExpert.com and the Money and Mental Health Policy Institute, whose face is among the most used by scammers in the UK, said “I am thankful the Government has listened to me and the huge numbers of other campaigners – across banks, insurers, consumer groups, charities, police and regulators – who’ve been desperate to ensure scam adverts are covered by the Online Safety Bill. We are amidst an epidemic of scam adverts. Scams don’t just destroy people’s finances – they hit their self-esteem, mental health and even leave some considering taking their own lives.”

“The Government now accepting the principle that scam adverts need to be included, and that firms who are paid to publish adverts need to be responsible for them, is a crucial first step. Until now, only user-generated scams were covered – which risked pushing more scam ads, incentivising criminals to shift strategy. Yet it is a complex area. Now we and others need to analyse all elements of this new part of the Bill, and work with Government and Parliament to close down the hiding places or gaps scammers can exploit.”

Mark Steward, Executive Director of Enforcement and Market Oversight, Financial Conduct Authority said “We welcome that the Online Safety Bill will now require the largest platforms to tackle fraudulent advertising. We have been clear about the need for legislation and appreciate the Government’s positive engagement on this. We look forward to working closely with the Government and regulatory partners as they finalise and implement the details of the draft Bill.”

David Postings, Chief Executive of UK Finance, said “We strongly welcome the government’s announcement that it will expand the scope of the Online Safety Bill to include advertising on social media and search engines. UK Finance, alongside a number of other bodies, has long been calling for the government to make this change.”

“This is particularly important given we know the majority of authorised push payment fraud starts online and that criminals often post fake adverts to try and trick victims.”

“The banking and finance industry is leading the fight against fraud, but the scale of the threat means it’s vital that all sectors, including online firms, do more to help protect the public. We look forward to working with the government and tech companies, including through the Online Fraud Steering Group, on further measures to tackle economic crime.”