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US senators unveil bill to curb scam ads on social media platforms

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Two U.S. senators have introduced bipartisan legislation aimed at forcing social media platforms to take greater responsibility for fraudulent advertising. Senators Ruben Gallego and Bernie Moreno said the proposed Safeguarding Consumers from Advertising Misconduct Act, or SCAM Act, would require platforms to take “reasonable steps” to prevent scam ads or face enforcement by the Federal Trade Commission and state attorneys general.

The bill would mandate verification of advertisers’ identities or the legal existence of businesses, and require platforms to quickly review and act on reports of fraudulent ads. Supporters say social media companies have become a major conduit for online scams by relaxing advertiser checks to protect ad revenues.

The proposal follows a Reuters investigation that cited internal documents at Meta Platforms estimating that scam and illicit ads could account for a significant share of revenue. Meta has disputed those figures and said it actively combats fraud. The legislation is backed by the American Bankers Association and consumer groups such as AARP, and would allow state authorities to bring civil action against non-compliant platforms.

OpenAI to Start Offering Chatbot Ads to Advertisers, Report Says

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OpenAI has begun offering advertising placements within its chatbot to a select group of marketers, marking a significant shift in its business model, according to a report by The Information.

The report said OpenAI is inviting dozens of advertisers to participate in a trial period lasting several weeks, with individual spending commitments below $1 million. Ads are expected to begin appearing in early February and will be priced based on the number of views rather than clicks. Reuters could not independently verify the report, and OpenAI did not immediately comment.

OpenAI is reportedly still developing tools that would allow advertisers to buy ads directly through a self-service system. For now, the process is being handled more manually as the company tests demand and format. The move follows OpenAI’s recent decision to begin showing ads to some U.S. users, as it looks to diversify revenue beyond subscriptions.

The push into advertising underscores growing pressure on OpenAI to fund the rising costs of AI development and data center infrastructure. Backed by Microsoft, the company is widely expected to pursue a public listing in the future, increasing the need for scalable and predictable revenue streams.

Meta Turning a Blind Eye to Illegal Gambling Ads, UK Regulator Says

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Britain’s Gambling Commission has accused Meta Platforms of failing to act against illegal online gambling advertisements appearing on its platforms, alleging the company continues to profit from unlawful activity.

Speaking at the ICE Barcelona trade show, Gambling Commission executive director Tim Miller said illegal casino ads are widely visible on Meta-owned platforms such as Facebook and Instagram. He argued that many of these ads promote gambling websites that are not registered with the UK’s GamStop self-exclusion scheme, which allows users to block themselves from online gambling services.

Miller rejected Meta’s claim that it only becomes aware of such ads after being notified, calling that assertion “simply false.” He said Meta’s own searchable advertising library clearly shows advertisers declaring their sites are “Not on GamStop,” adding that if regulators can identify them, Meta can as well.

“It could leave you with the impression they are quite happy to turn a blind eye and continue taking money from criminals and scammers,” Miller said, accusing the company of choosing not to look.

In response, Meta said it enforces strict advertising policies on gambling and gaming and removes ads that violate its rules once identified. A spokesperson said the company is working closely with the Gambling Commission to remove flagged ads and improve proactive detection tools, urging continued cooperation to protect users and legitimate advertisers.

The dispute highlights growing regulatory scrutiny of how major social media platforms monitor and control advertising linked to illegal activities.