The US Federal Trade Commission (FTC) has asked that eight major social media and video streaming firms, including Meta Platforms, Twitter, TikTok and YouTube, turn over information surrounding how they handle deceptive or fraudulent advertisements. The FTC issued orders on Thursday to the companies mentioned above.
Snap, Amazon, Twitch, Pinterest and Instagram are just a few companies that need to provide detailed information on their ad revenue and number of views. This data is especially important for products and services that are more likely to be the target of deceptive practices.
Related: US Congressmen Say More Social Media Regulation Expected In 2023
The amount of money consumers have reported losing to fraud that originated on social media platforms has skyrocketed since 2017. In 2022 alone, consumers reported losing more than $1.2 billion to fraud that started on social media, more than any other contact method, according toFTC data.
“Social media has been a gold mine for scammers who tout sham products and other scams that have cost consumers enormously in recent years,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “This study will help the FTC ensure that social media and video streaming companies are doing everything they can to keep scammers and deceptive ads off their platforms.”
