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Nebraska bill would force social platforms to verify advertisers and speed takedowns of scam ads
Summary
Senator Carolyn Bosn’s LB 11 18 would require social media companies to verify advertiser identity, investigate reported fraudulent ads, and remove ads found to be deceptive; banks, law enforcement and AARP backed the bill, while platform trade groups urged more flexible timelines and warned of over‑removal risks.
Senator Carolyn Bosn introduced LB 11 18 to the Banking, Commerce and Insurance Committee on behalf of sponsors who say the bill would update Nebraska consumer protection rules to require social media companies to verify advertisers and remove deceptive advertisements.
"Fraudulent and misleading advertising is not free speech, colleagues. They are deception for profit. Full stop," said Paul Benda, Executive Vice President for Risk, Fraud and Cyber Security at the American Bankers Association, testifying in support of the bill. Proponents from banks, credit unions, AARP and local law enforcement told the committee that scam ads on platforms such as Facebook and Instagram have caused large financial losses to Nebraskans and that platform takedowns are too slow and inconsistent.
The bill would require platforms that accept payment for advertising to implement advertiser identity verification, maintain procedures to investigate reports of deceptive advertising, and remove advertising found to be fraudulent; failure to comply could be enforced under Nebraska deceptive trade practice law by the attorney general. Supporters cited news reporting and enforcement estimates about the scale of scam advertising and urged the committee to advance the bill.
Opponents, including Megan Stokes for the Computer Communications Industry Association, said many platforms already deploy automated and human review and warned that prescriptive deadlines and an "instant takedown" requirement could lead to inappropriate removals, harm small legitimate advertisers, and create operational and cross‑jurisdictional problems for platforms and law enforcement.
"The 7 day requirement is a concern," Stokes said, adding that complex investigations and coordination with law enforcement can take longer and that an "as soon as practicable" standard may better balance accuracy and speed.
Committee members questioned both sides about how platforms prioritize content and about practicable timelines for takedowns. Senator Bosn said the bill’s requirements are intended to set a clear, enforceable standard rather than to create new civil penalties. No formal committee action or vote was recorded in the transcript; the hearing record included multiple proponent letters and one opponent letter.
