The UK’s Financial Conduct Authority (FCA) has urged the Government to amend the Online Safety Bill to include paid advertising, in addition to user-generated content on social media platforms.
Currently, the Bill aims to address fraud related to user-generated content on social media sites and dating apps; however, it does not address the issue of fraudulent paid online advertisements or fake investment firm websites. The FCA’s involvement reflects growing concerns expressed by consumer groups and trade bodies about the rise of scam advertising on social media.
This call for change comes on the heels of inquiries from opposition parties in the House of Commons, which prompted Prime Minister Boris Johnson to commit to reassessing the Bill.
The FCA also advocates for legislative adjustments to classify content associated with fraud offenses as ‘priority’ illegal content, necessitating monitoring and preventive measures by social media platforms.
Nikhil Rathi, chief executive of the FCA, emphasizes the importance of addressing the risks posed to consumers by online advertising and the use of exemptions to sell products to the public. He stated, “Change is needed and we will continue to push for powers where we need them.” Additionally, the FCA has identified other areas requiring legislative reform, including the extension of the Senior Managers and Certification Regime to payment and e-money firms.