FTC asks public whether to expand impersonation rule to cover platforms' ad-optimization tools
The agency is weighing new obligations for social media, search and marketplace platforms to stop scam ads that pose as businesses or government agencies.
What we know
- The Federal Trade Commission announced an advance notice of proposed rulemaking on whether to update its Rule on Impersonation of Government and Businesses, or take other action, to address platforms' ad-optimization practices that may further impersonation scams. [1] [2]
- The FTC said it received more than 1 million imposter scam reports in 2025, with consumers reporting losses of nearly $3.5 billion. [2]
- The FTC said nearly 30% of consumers who reported losing money to scammers in 2025 said the first contact came on social media, with reported losses of $2.1 billion. [2]
- The comment deadline is 60 days after the notice is published in the Federal Register. The Commission voted 2-0 to send the notice for publication. [2]
- Not yet confirmed: The FTC has not proposed specific new requirements. It is asking whether to amend the existing rule, write a separate rule or use non-regulatory measures. It has not said when the notice will be published in the Federal Register, so the comment deadline is not yet set. The claim that platforms' ad-optimization tools further impersonation scams is the FTC's own characterization, and the notice asks for comment on whether those tools amount to unfair or deceptive practices.
The Federal Trade Commission said on Sept. 24 that it is considering whether to update its Rule on Impersonation of Government and Businesses, or take other action, to address online platforms' ad-optimization practices that may be furthering impersonation scams. [1][2]
The agency announced an advance notice of proposed rulemaking, which it said will be published in the Federal Register. The notice asks for public comment on how ad-optimization tools and services offered by social media, search engines and other digital marketplace platforms affect scammers' efforts to pose as legitimate businesses and government agencies in online ads. [2]
The FTC said it is seeking comment on several topics. They include the financial incentives behind these tools, the steps platforms already take to keep them from being used for deceptive ads, and whether the tools amount to unfair or deceptive practices. The agency also asked whether it should amend the existing rule, propose a separate rule or use non-regulatory measures. [2]
The notice also asks about measures the Commission could consider in any new regulation. The FTC listed vetting advertisers, monitoring posted ads, investigating suspected scam ads, removing confirmed scam ads and taking disciplinary action against offending advertisers. [2]
The FTC said impersonation scams have topped the list of fraud complaints it receives in recent years. In 2025 it received more than 1 million imposter scam reports, and consumers reported losing nearly $3.5 billion. The agency said nearly 30% of consumers who reported losing money to scammers that year said they were first contacted on social media, with reported losses of $2.1 billion. [2]
"Impersonation scams—especially when amplified by digital platforms that profit from them—do more than rob Americans of their hard-earned money," said Christopher Mufarrige, Director of the FTC's Bureau of Consumer Protection. Mufarrige said the true cost of impersonation fraud is likely far higher than the reported figure. [2]
Comments will be due 60 days after the notice appears in the Federal Register, and the FTC said submitted comments will be posted to Regulations.gov. The Commission voted 2-0 to send the notice for publication. [2]