I 
119TH CONGRESS 
2D SESSION 
H. R. 7548 
To prohibit online platforms from displaying fraudulent or deceptive 
commercial advertisements, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 12, 2026 
Mr. MEUSER (for himself and Mr. CORREA) introduced the following bill; 
which was referred to the Committee on Energy and Commerce 
A BILL 
To prohibit online platforms from displaying fraudulent or 
deceptive commercial advertisements, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Safeguarding Con-
sumers from Advertising Misconduct Act’’ or the ‘‘SCAM 
Act’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) Online platforms have become a primary 
conduit for online scams or other digital advertising- 
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related fraud, including fake giveaways, animal 
sales, deal advertisements tied to nonexistent prod-
ucts, government impersonations, romance scams, 
health scams, and impersonations using AI-cloned 
voices and stolen images targeting legitimate busi-
nesses. 
(2) According to data reported by the Federal 
Trade Commission, social media platforms are a pri-
mary contact method to initiate scams, with individ-
uals ages 20 to 29 reporting social media was the 
contact method more than 38 percent of the time, 
and for individuals ages 18 to 19, that figure was 
47 percent. 
(3) According to the Commission, the estimated 
overall loss from fraud in 2024, adjusted to account 
for underreporting, was $195,900,000,000, with an 
estimated $81,500,000,000 lost by older adults. 
(4) According to the AARP, consumers filed 
2,600,000 fraud reports in 2023, with a median in-
dividual loss of $500. Nearly 100,000 consumers re-
ported losses of $10,000 or more. 
(5) Some online platforms have abandoned 
tighter advertiser verification processes to avoid driv-
ing away profits from advertisers. 
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(6) Section 230 of the Communications Act of 
1934 (47 U.S.C. 230) was enacted to protect online 
platforms acting as ‘‘Good Samaritans’’ by shielding 
such platforms from being treated as publishers of 
user content, while encouraging such platforms to 
block or screen offensive content. 
(7) Courts have interpreted Section 230 too 
broadly, granting sweeping immunity even to online 
platforms alleged to facilitate unlawful or harmful 
activity and including online activities that did not 
exist in 1996—an outcome contrary to Congress’s 
original intent. 
(8) According to the Federal Trade Commis-
sion’s consumer alert titled ‘‘Top scams of 2024’’ 
(March 10, 2025), ‘‘People reported losing money 
more often when contacted through social media. 
Most people (70 percent) reported a loss when con-
tacted on a social media platform—and lost more 
money overall.’’ The Commission issued broad infor-
mation requests to online platforms using the Com-
mission’s authority under section 6(b) of the Federal 
Trade Commission Act (15 U.S.C. 46(b)) in order to 
assess paid advertisement screening practices, citing 
the surge in scam ads. 
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(9) Online platforms’ inconsistent and optional 
efforts to mitigate the rise in scams have failed, 
leading to a consumer confidence crisis across digital 
financial systems. 
SEC. 3. PROHIBITION ON DIGITAL ADVERTISING-RELATED 
FRAUD. 
(a) IN GENERAL.—It shall be unlawful for an online 
platform to display a fraudulent or deceptive commercial 
advertisement on such platform if the online platform— 
(1) accepted payment to display such advertise-
ment; and 
(2) failed to take reasonable steps (as described 
in subsection (b)) to prevent the fraudulent or de-
ceptive commercial advertisement from being made 
available. 
(b) ADDITIONAL REQUIREMENTS FOR ONLINE PLAT-
FORMS.— 
(1) REQUIRED PROCEDURES.—An online plat-
form that accepts payment, or any other form of 
compensation, to display an advertisement shall es-
tablish and implement procedures to require the fol-
lowing: 
(A) Procedures to verify the identity of 
each advertiser prior to the placement of a paid 
advertisement, including— 
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(2) INVESTIGATION OF FRAUDULENT OR DE-
CEPTIVE COMMERCIAL ADVERTISEMENTS.— 
(A) IN GENERAL.—If a person (including a 
government entity) reports a fraudulent or de-
ceptive commercial advertisement or the detec-
tion system of an online platform identifies a 
fraudulent or deceptive commercial advertise-
ment, the online platform shall— 
(i) not later than 72 hours after the 
submission of such report or receiving such 
identification, conduct an investigation of 
such advertisement; and 
(ii) not later than 24 hours after con-
cluding the investigation, if applicable, no-
tify the person of the outcome of such in-
vestigation. 
(B) REMOVAL.— 
(i) AFTER INVESTIGATION.—If, after 
conducting an investigation under subpara-
graph (A), an online platform determines 
that an advertisement violates the require-
ments of this Act, such online platform 
shall, not later than 24 hours after making 
such determination, remove the advertise-
ment from the platform. 
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(ii) DURING
INVESTIGATION.—Noth-
ing in this subparagraph shall preclude an 
online platform from removing an adver-
tisement prior to the conclusion of an in-
vestigation under subparagraph (A), as de-
termined appropriate by the online plat-
form. 
(3) PRESUMED COMPLIANCE.— 
(A) IN GENERAL.—For purposes of sub-
section (a), an online platform shall be pre-
sumed to have taken reasonable steps to pre-
vent a fraudulent or deceptive commercial ad-
vertisement from being made available if the 
online platform— 
(i) submits to the Commission a 
fraudulent and deceptive commercial ad-
vertisement detection program that incor-
porates the procedures described in para-
graph (1), and the Commission approves 
such program; and 
(ii) demonstrates compliance with, 
and active enforcement of, the program de-
scribed in clause (i), including by dem-
onstrating that the online platform pro-
vides adequate resources for the program. 
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(B) RULE OF CONSTRUCTION.—Nothing in 
this paragraph shall be construed to create a 
presumption of compliance in any individual en-
forcement action in which the Commission de-
termines or establishes that the online platform 
did not comply with its fraudulent and decep-
tive commercial advertisement detection pro-
gram. 
(c) REGULATIONS.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this section, the Commis-
sion shall promulgate regulations in accordance with 
section 553 of title 5, United States Code, to imple-
ment this section. 
(2) UPDATES.—The Commission shall review 
the regulations promulgated under paragraph (1) on 
an annual basis and revise such regulations as ap-
propriate. 
(d) ENFORCEMENT BY THE COMMISSION.— 
(1) UNFAIR
OR
DECEPTIVE
ACTS
OR
PRAC-
TICES.—A violation of this Act or a regulation pro-
mulgated under this Act shall be treated as a viola-
tion of a rule defining an unfair or deceptive act or 
practice prescribed under section 18(a)(1)(B) of the 
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Federal 
Trade 
Commission 
Act 
(15 
U.S.C. 
57a(a)(1)(B)). 
(2) POWERS OF THE COMMISSION.— 
(A) IN GENERAL.—The Commission shall 
enforce this Act and any regulation promul-
gated under this Act in the same manner, by 
the same means, and with the same jurisdic-
tion, powers, and duties as though all applicable 
terms and provisions of the Federal Trade 
Commission Act (15 U.S.C. 41 et seq.) were in-
corporated into and made a part of this Act. 
(B) PRIVILEGES
AND
IMMUNITIES.—Any 
person who violates this Act or any regulation 
promulgated under this Act shall be subject to 
the penalties and entitled to the privileges and 
immunities provided in the Federal Trade Com-
mission Act (15 U.S.C. 41 et seq.). 
(C) AUTHORITY PRESERVED.—Nothing in 
this Act shall be construed to limit the author-
ity of the Commission under any other provi-
sion of law. 
(e) ENFORCEMENT BY STATES.— 
(1) AUTHORIZATION.—In any case in which the 
attorney general of a State has reason to believe 
that an interest of the residents of the State has 
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been or is threatened or adversely affected by the 
engagement of any person in an act or practice that 
violates subsection (a) or (b), the attorney general of 
the State may, as parens patriae, bring a civil action 
on behalf of the residents of the State in a district 
court of the United States of appropriate jurisdic-
tion to— 
(A) enjoin such act or practice; 
(B) enforce compliance with subsection (a) 
or (b); 
(C) obtain damages, restitution, or other 
compensation on behalf of residents of the 
State; or 
(D) obtain such other relief as the court 
may consider to be appropriate. 
(2) RIGHTS OF THE COMMISSION.— 
(A) NOTICE TO THE COMMISSION.— 
(i) IN GENERAL.—Except as provided 
in clause (iii), before initiating a civil ac-
tion under paragraph (1), the attorney 
general of a State shall notify the Commis-
sion in writing that the attorney general 
intends to bring such civil action. 
(ii) CONTENTS.—The notification re-
quired by clause (i) shall include a copy of 
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the complaint to be filed to initiate the 
civil action. 
(iii) EXCEPTION.—If it is not feasible 
for the attorney general of a State to pro-
vide the notification required by clause (i) 
before initiating a civil action under para-
graph (1), the attorney general shall notify 
the Commission immediately upon insti-
tuting the civil action. 
(B) INTERVENTION
BY
THE
COMMIS-
SION.—Upon receiving the notice required by 
subparagraph (A)(i), the Commission may in-
tervene in the civil action and, upon inter-
vening— 
(i) be heard on all matters arising in 
the civil action; and 
(ii) file petitions for appeal of a deci-
sion in the civil action. 
(3) INVESTIGATORY POWERS.—Nothing in this 
subsection may be construed to prevent the attorney 
general of a State from exercising the powers con-
ferred on the attorney general by the laws of the 
State to conduct investigations, to administer oaths 
or affirmations, or to compel the attendance of wit-
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nesses or the production of documentary or other 
evidence. 
(4) PREEMPTIVE
ACTION
BY
THE
COMMIS-
SION.—If the Commission has instituted a civil ac-
tion for a violation of subsection (a) or (b), no State 
officer may bring an action under paragraph (1) 
during the pendency of that action against any de-
fendant named in the complaint of the Commission 
for any violation of subsection (a) or (b) alleged in 
the complaint. 
(5) VENUE; SERVICE OF PROCESS.— 
(A) VENUE.—Any action brought under 
paragraph (1) may be brought in the district 
court of the United States that meets applicable 
requirements relating to venue under section 
1391 of title 28, United States Code. 
(B) SERVICE OF PROCESS.—In an action 
brought under paragraph (1), process may be 
served in any district in which the defendant— 
(i) is an inhabitant; or 
(ii) may be found. 
(f) PRIVATE RIGHT OF ACTION.— 
(1) IN GENERAL.—A person who has been in-
jured by another person in violation of subsection 
(a) or (b) may bring a civil action against such per-
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son in an appropriate district court of the United 
States— 
(A) seeking injunctive relief; 
(B) subject to paragraph (2), to obtain ac-
tual damages; and 
(C) to obtain, for each violation, any other 
restitution, penalties, and other legal or equi-
table relief as the court may deem just and 
proper. 
(2) WILLFUL OR KNOWING VIOLATIONS.—If the 
court finds that the defendant acted willfully or 
knowingly in committing a violation described in 
paragraph (1), the court may, in its discretion, in-
crease the amount of the award to an amount equal 
to not more than 3 times the amount available 
under paragraph (1)(B). 
(3) COSTS AND ATTORNEY’S FEES.—The court 
shall award to a prevailing plaintiff in an action 
under this subsection the litigation costs of such ac-
tion and reasonable attorney’s fees, as determined 
by the court. 
(4) LIMITATION.—An action may be com-
menced under this subsection not later than 5 years 
after the date on which the person first discovered 
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or had a reasonable opportunity to discover the vio-
lation. 
(5) NONEXCLUSIVE REMEDY.—Bringing a civil 
action under this subsection shall be in addition to 
any other remedy available to the person bringing 
such civil action. 
(g) RELATIONSHIP TO OTHER LAWS.— 
(1) EFFECT OF OTHER LAWS.— 
(A) APPLICATION OF SECTION 230(C)(1).— 
Section 230(c)(1) of the Communications Act of 
1934 (47 U.S.C. 230(c)(1)) shall not apply to 
any violation of this section. 
(B) APPLICATION OF SECTION 230(C)(2).— 
Nothing in this Act shall be construed to limit 
or affect the civil liability protections under sec-
tion 230(c)(2) of the Communications Act of 
1934 (47 U.S.C. 230(c)(2)). 
(2) EFFECT ON STATE LAWS.—Nothing in this 
section or any regulation promulgated under this 
section shall preempt or otherwise affect any State 
or local law. 
(3) SEVERABILITY.—If any provision of this 
section, or the application thereof to any person or 
circumstance, is held invalid, the remainder of this 
section and the application of such provision to other 
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persons not similarly situated or to other cir-
cumstances shall not be affected by the invalidation. 
SEC. 4. REGULATORY REPORT ON ONLINE SCAMS AND PO-
TENTIAL FOR ADDITIONAL RULEMAKING. 
(a) REPORT REQUIRED.—Not later than 9 months 
after the date of enactment of this section, the Commis-
sion, in consultation with other Federal agencies, shall 
submit to the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on Finan-
cial Services of the House of Representatives a report as-
sessing whether additional statutory authority is needed 
to prevent the proliferation of online scams involving fi-
nancial transactions. 
(b) CONTENTS.—The report required under sub-
section (a) shall include— 
(1) an assessment of any regulatory gaps that 
allow online scams involving fraudulent advertise-
ments or digital payment fraud to persist; 
(2) an analysis of whether improved informa-
tion-sharing mechanisms between online platforms, 
financial institutions, and regulators could reduce 
consumer losses; and 
(3) recommendations for such legislation and 
administrative action required to strengthen over-
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sight of online platforms or intermediaries facili-
tating scam-related payments. 
SEC. 5. DEFINITIONS. 
For purposes of this Act: 
(1) COMMISSION.—The term ‘‘Commission’’ 
means the Federal Trade Commission. 
(2) DECEPTIVE.—The term ‘‘deceptive’’— 
(A) has the meaning given the term in sec-
tion 5 of the Federal Trade Commission Act 
(15 U.S.C. 45); 
(B) shall be interpreted consistent with 
any guidance of the Commission or precedent of 
Federal courts applying such section; and 
(C) for purposes of this Act, is limited to 
material misrepresentations, omissions, or prac-
tices that are likely to cause financial harm to 
a consumer. 
(3) ONLINE
PLATFORM.—The term ‘‘online 
platform’’ means any public-facing website, online 
service, online application, or mobile application that 
predominantly provides a community forum for user- 
generated content, such as sharing videos, images, 
games, audio files, or other content, including a so-
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cial media service, social network, or virtual reality 
environment. 
Æ 
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