The FTC is seeking public comment on whether platforms should be liable when scammers use their ad systems to impersonate businesses or government agencies. The agency reported more than 1 million impersonation complaints in 2025 and nearly $3.5 billion in consumer losses, with social media tied to about $2.1 billion. Commissioners voted 2-0 to open a 60-day comment period after the notice is published in the Federal Register. The FTC asks whether ad-targeting tools enable scammers and what additional screening platforms should perform.
FTC Seeks Public Input on Holding Platforms Responsible for Scam Ads
Image credit: U.S. General Services Administration
The Federal Trade Commission is asking the public whether social media platforms, search engines and online marketplaces should be held accountable when scammers use their advertising systems to impersonate real businesses or government agencies. The agency said this change could alter how ads are screened before they reach users' feeds, especially after many consumers reported losing money to impersonation scams.
What the FTC Found
The FTC reported receiving more than 1 million impersonation-scam complaints in 2025, with consumers losing nearly $3.5 billion. Almost a third of those victims said they were first contacted through social media, which accounted for about $2.1 billion of the total losses.
What the Agency Is Asking
The commission is questioning whether the same ad-targeting and optimization tools platforms sell to legitimate businesses are also enabling scammers to reach victims—regardless of whether the advertiser is who it claims to be. The rule under review is the Trade Regulation Rule on Impersonation of Government and Businesses, in effect since April 2024, which already allows the FTC to seek civil penalties and refunds when actors pose as companies or government agencies.
"Today's impersonation scams are no longer the work of isolated con artists; they are sophisticated, highly engineered operations powered by the same advertising and targeting tools that platforms sell to legitimate businesses." — Christopher Mufarrige, Director of the FTC's Bureau of Consumer Protection
Next Steps
Commissioners voted 2-0 to move forward with a request for public comment. The public comment period will begin once the notice is published in the Federal Register and will run for 60 days, with submissions accepted through Regulations.gov. The FTC's new questions probe whether platforms are effectively violating the impersonation rule when their ad-optimization features help scammers and what additional screening platforms should be required to perform.
How Consumers Can Protect Themselves
Until any rule changes take effect, consumers are advised to exercise caution: check where a sponsored ad's link goes before clicking, and whenever possible go directly to a company's official website or app. If an ad purports to be from a government agency, contact the agency using official contact information rather than responding to the ad.
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