Senators Introduce Bipartisan SCAM Act to Crack Down on Deceptive Online Ads

The proposed legislation aims to hold social media platforms accountable for fraudulent advertisements.

Published on Feb. 26, 2026

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On February 4, 2026, Senators Gallego (D-AZ) and Moreno (R-OH) introduced the bipartisan Safeguarding Consumers from Advertising Misconduct (SCAM) Act. The bill would require online platforms to take reasonable steps to prevent fraudulent and deceptive ads, and strengthen accountability when such ads slip through. The legislation could potentially empower the Federal Trade Commission and states to better enforce consumer protection laws, as well as limit Section 230 protections for platforms that run paid advertising.

Why it matters

The SCAM Act is a bipartisan effort to address the growing problem of scammers using social media platforms to defraud consumers. By holding these platforms more accountable, the legislation aims to protect Americans' money and financial security online.

The details

Key provisions of the SCAM Act include advertiser verification requirements and a mandate for platforms to take reasonable steps to prevent and review fraudulent ads. While no major tech companies have formally opposed the bill yet, its prospects will likely depend on the industry's response, as social media giants are expected to aggressively lobby against it.

  • The SCAM Act was introduced on February 4, 2026.

The players

Senator Gallego

A Democratic senator from Arizona who co-introduced the SCAM Act.

Senator Moreno

A Republican senator from Ohio who co-introduced the SCAM Act.

Federal Trade Commission (FTC)

The federal agency that could see its consumer protection enforcement powers strengthened under the SCAM Act.

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What they’re saying

“Scammers are using social media to swindle Americans out of their hard-earned savings, and right now, those platforms face almost no consequences for letting it happen. If a company is making money from running ads on their site, it has a responsibility to make sure those ads aren't fraudulent. This bipartisan bill will hold social media companies accountable and protect consumers' money online.”

— Senator Gallego (natlawreview.com)

“It is critical that we protect American consumers from deceptive ads and shameless fraudsters who make millions taking advantage of legal loopholes. We can't sit by while social media companies have business models that knowingly enable scams that target the American people.”

— Senator Moreno (natlawreview.com)

What’s next

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