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Lawmakers press platforms over scam ads after reporting of high-risk ad volumes
Summary
Committee members cited reporting that social platforms may derive a sizable share of ad revenue from scam ads; witnesses urged upstream platform guardrails and faster takedowns to prevent criminals from reaching potential victims.
During questioning Rep. Sherman and others pointed to reporting that a meaningful share of some platforms' ad revenues may derive from scam advertising and asked whether ad-first business models create systemic risks.
AARP's Ms. Gunther urged platforms to implement upstream guardrails and faster removal mechanisms so criminals cannot reach victims in the first place: "We need to be a lot more proactive in preventing this so that the criminals are never contacting that potential victim," she said. She added that blocking scam content upstream reduces downstream financial harm and eases the burden on financial institutions.
Members on both sides asked whether companies such as Meta should be treated differently under current law; witnesses said potential legal claims would depend on evidence of scienter or specific illegal conduct, and that Congress could legislate new prohibitions if it chose to do so.
The hearing included no new legal findings against any platform; members requested further documentation and emphasized collaboration between platforms, financial institutions and investigators to disrupt ad-based funnels for fraud.
